ABG Half Year Report 2011

26th Jul 2011 07:00

AFRICAN BARRICK GOLD

LSE: ABG

Half Year Report for the six months ended 30 June 2011

26 July 2011

Based on International Financial Reporting Standards ("IFRS") and expressed in US Dollars

African Barrick Gold plc ("ABG'') reports half year results

â†' Net income up 21% Y-o-Y to $120 million, interim dividend doubled

Financial Highlights

Net income of $120 million, with an EPS of 29.3 cents, up 21% on H1 2010.

EBITDA of $245 million, up 25% on H1 2010.

Operational cash flow of $186 million, an increase of 18% on H1 2010.

Cash margin per ounce sold of $806, up 29% on H1 2010 and 13% versus H2 2010.

Net cash position of $455 million as at 30 June 2011.

Interim dividend doubled to 3.2 cents per share.

Operational Highlights

Attributable gold production of 345,857 ounces, in line with overall expectations for the first half of the year.

Gold sales 3% higher than production for H1 2011, as a result of improved inventory management.

Cash costs of $655 per ounce, an increase of 24% on H1 2010, driven by cost inflation and North Mara mine sequencing.

Spinning diesel back-up power installed earlier than planned at Buzwagi.

Feasibility studies at North Mara underground, Golden Ridge and Bulyanhulu Upper East on track.

Tulawaka initial mine life extension announced early in 2011, further positive drill results achieved over the course of H1.

Continued exploration successes at the Nyanzaga project.

African Barrick Gold plc Three months ended Six months ended 30 June 30 June % 30 June 30 June % 2011 2010 change 2011 2010 change

Attributable Gold Production (ounces)1 171,950 179,113 -4% 345,857 356,208 -3%

Attributable Gold Sales (ounces)1 185,080 173,374 7%

357,082 358,098 0%

Attributable Cash cost ($/ounce)2 652 543 20%

655 529 24%

Average realised sales price ($/ounce)2 1,524 1,205 27% 1,461 1,155 26% (in $'000) Revenue3 311,760 224,271 39% 578,387 445,889 30% EBITDA 2 140,072 96,399 45% 244,927 196,254 25%

Cash generated from operating activities 99,450 90,341 10% 186,134 157,665 18%

Net profit attributable to owners 69,773 46,177 54%

120,134 99,231 21%

Basic & dilutive earnings per share (cents) 17.0 11.3 54% 29.3 24.2 21% Dividend per share (cents) 3.2 1.6 100% 3.2 1.6 100%

1 Production and sold ounces reflect equity ounces which exclude 30% of Tulawaka's production base.

2 Cash costs per ounce sold, average realised gold price and EBITDA are non-IFRS financial performance measures with no standard meaning under IFRS. Refer to "Non-IFRS measures" on page 26 for the definitions of each measure.

3 Based on restated revenue to include sales of co-products, refer to pages 21 and 35.

Commenting on the results, CEO Greg Hawkins said: "We have delivered productionin line with our expectations for the first half of the year, notwithstandingthe SAG mill motor failure at Buzwagi and the illegal intrusion at North Marain May. We have also reported record cash margins for ABG and a strong net cashposition, which supports our decision to double the interim dividend. Lookingahead, we are confident the business is well positioned to continue deliveringstrong results over the second half of 2011 as we start to see the benefits ofthe operational improvements we have made at Buzwagi, the continued deliveryfrom our other three mines and ongoing progress on our portfolio of growthprojects. As such, our production and cash cost guidance for the year remainunchanged."Interim Results OverviewCurrent operationsThroughout the first half of the year, we have continued our focus ondelivering stable production from all four of our producing mines whileinvesting the capital to underpin our future production plans. Despite severalchallenges in our operating enviornment, notably the SAG mill motor failure atBuzwagi and the illegal intrusions at North Mara, overall our operations havedelivered in line with our expectations for the period. We remain confidentthat we are on track to deliver improved levels of production over the secondhalf of the year and we expect to continue to see positive effects as a resultof the significant investment we have made at Buzwagi and the waste strippingprogramme at North Mara.Bulyanhulu has continued to add incremental production over the first half ofthe year with ongoing cost discipline, despite the rock fall incident in Aprilwhich resulted in the tragic death of one of our employees.North Mara has continued to work through the significant waste strip over thefirst half of the year and is on track to meet its production targets for theyear and to deliver an improved grade profile as we go into 2012.We have been encouraged by the step up in production rates at Buzwagi over thecourse of the first six months of the year, despite the short term impacts ofthe SAG mill motor failure during the second quarter. In addition, we haverecently completed the installation of 6MW of spinning diesel back-up powerahead of schedule. This should enable the mine to deal with power outages muchmore efficiently, which in turn should allow for an increase in throughput atthe process plant. The success of this initiative is critical as we look to addadditional production from Buzwagi during the second half of the year.

At Tulawaka, performance has been consistently strong throughout the first half of the year with the improved underground mining performance leading to significantly higher grades and improved production levels.

We have remained focused on the cost profile of each of our operationsthroughout the reporting period, given the pressures we have experienced in anumber of areas, particularly labour, energy and external services. Higherrevenue related costs as a result of the continuing increases in the averagerealised gold prices which, together with the increased cost of oil, has added$13 to cash costs per ounce at our operations compared to budgeted levels atthe start of the year. Over the second half of the year, we will be initiatingprojects at all of our mines to further improve our business processes andsystems with the aim of minimising costs as well as optimising the productivecapacity of the mines.

We have invested $119 million in capital expenditures during the first six months of 2011 and we are on track to reach our $260 million budget for the year. In addition, we plan to spend $20 million on additional security infrastructure at Buzwagi and North Mara to improve working conditions at these mine sites.

Financial resultsContinuing increases in the average realised gold price, which stood at $1,461per ounce for the reporting period, has allowed us to deliver a record cashmargin of $806 per ounce for the period under review. This continues the trendof rising margins seen throughout 2009 and 2010. In addition, our performancefor the first half of the year has been very positive across a range offinancial metrics when compared to the first half of 2010: revenue up 30%,EBITDA up 25%, cash generated from operations up 18% and EPS up 21%. We arealso paying an interim dividend of 3.2 cents per share. We will continue tomaintain our focus on cost controls in order to ensure that we continue tomaximise shareholder value in the current gold price environment.Overall, our financial performance for the reporting period provides us with astrong platform and significant financial flexibility from which to assess andinvest in high return growth options. As we go through the second half of theyear, we expect to further clarify the likely investment levels required by theorganic growth projects currently in the final stage of the feasibilitystudies. In addition, we will continue to explore other options within ourexisting portfolio as well as potential acquisition opportunities. At the sametime, investment in our existing operations will continue to be critical and wewill ensure our operations have the necessary capital to meet their life ofmine plans.

Exploration and growth projects

Our portfolio of advanced growth projects and exploration programmes has made good progress during the first half of the year.

The mine life at Tulawaka has been initially extended to the middle of nextyear and the drill programme in recent months has identified further extensionsto the resource base as we look to keep the mine in production into 2013 andbeyond. We expect to provide a detailed update on this before the end of theyear. The three feasibility studies currently underway are progressing asfollows:at the North Mara underground project, the study is expected to be finalised inthe coming weeks and will then be followed by an internal review process beforebeing presented to the Board for approval. Our aim is to communicate theresults of this by the end of the third quarter.at the Golden Ridge project, we are continuing to see positive results and arecarrying out some more detailed analysis to optimise future returns. This willbe an ongoing project but our current assumption is that we will be in aposition to communicate further detail within the next three months.with respect to Bulyanhulu Upper East, the initial feasibility study has beenpositively concluded subject to initiating a test stope in order to confirm theappropriate mining method as well as to validate the geotechnical andmetallurgical assumptions. This will run late into the fourth quarter, but weestimate we will be in a position to communicate the initial details prior tothat, subject to confirmation on completion of the test work.In addition to the above, we have also recently initiated a study to assess thefeasibility of the recovery of gold from the tailings facility at Bulyanhuluthrough the addition of a CIL plant, which we believe has the potential toprovide meaningful incremental production. We will provide additional updateson this as the work progresses.Our greenfield exploration activities have largely been focused on the Nyanzagaproject where we have had a series of promising drill results over the firstsix months of the year. We aim to complete the scoping study on this project byearly 2012.Dividend

With the strong financial performance of the Company and the robustness of itsbalance sheet, the Board of ABG has approved an interim dividend for 2011 of3.2 cents per share. This is based on the belief that the Company is stronglypositioned to generate the returns which will enable ABG to deliver on itsstrategic objectives whilst also providing an attractive dividend payout forshareholders.The interim dividend will be paid on 26 September to holders on record at 2September. The ex-dividend date will be 31 August. ABG will declare the interimdividend in US dollars. Unless a shareholder elects to receive dividends in USdollars, they will be paid in pounds sterling with the US dollar interimdividend being converted into pounds sterling at exchange rates prevailing atthe relevant time. The exchange rate conversion for the interim dividend willbe made on or around 7 September.Subject to the capital requirements and cashflows of the Company and providedthat there are distributable reserves available to ABG for this purpose, it isthe Board's intention to continue to pay an annual dividend based on theprofits of the Company, to be paid in the proportion of approximately one thirdfollowing the interim results and two thirds following the final results. Thisexpectation is also made on the assumption that ABG's performance continues inline with the Board's expectations and in the absence of any unforeseencircumstances.

Outlook

Against a backdrop of continuing uncertainty in the overall economy, we remainpositive on the outlook for gold. We believe that the fundamental attraction ofgold as a store of value as a result of the global credit crisis will continueto support future gold prices.Overall, all of our operating mines have delivered in line with ourexpectations for the first half of the year, despite the challenges faced inthe operating environment at North Mara and Buzwagi. Given the resultsdelivered in the first half of the year, we maintain our production guidancefor 2011 set out at the time of our preliminary results, namely 700,000-760,000ounces of gold. Likewise, we still expect our cash costs for the year to fallin the range set of $590-650 per ounce ($545-605 per ounce on a cash operatingcost basis, excluding royalties), as the higher production levels expected inthe second half of the year start to produce further positive effects,notwithstanding the impact of the higher gold and oil prices.

Other developments

Appointment of Independent Non-Executive Director

We have recently appointed Ambassador Juma V. Mwapachu as an IndependentNon-Executive Director. Ambassador Mwapachu is a law graduate and began hiscareer in the public sector in Tanzania as a State Attorney and subsequentlyserved in the Foreign Office. Throughout his career he has been a leadingadvocate of the creation of a strong and dynamic private sector in Tanzania. Hewas the founding Secretary General of the Chamber of Commerce, Industry andAgriculture in 1988 and served as Chairman of the Confederation of Tanzaniaindustries between 1996 and 2000 as well as Chairman of the East AfricanBusiness Council from 1999 to 2000. During this period, he also served on anumber of Presidential Commissions that consolidated Tanzania's market economyand which ushered in a multi-party political system. He was a Member of theTeam that crafted Tanzania's Development Vision 2025 and was also appointed asTanzania's Ambassador to France, a post he held from 2002 to 2006. Followinghis return to Tanzania, he has played a leading role in the regionalintegration of East Africa, notably through his appointment as SecretaryGeneral of the East African Community, a position he held for five years untilthe end of April this year. We are delighted to welcome someone of the calibre of Ambassador Mwapachu. Hisexperience in Tanzania and more broadly in Africa will add a new dimension tothe ABG Board and will be of significant value in meeting the challenges ofdelivering on the strategic objectives of our business.

Regulatory and tax framework

As we communicated last month, there has recently been debate in Tanzania withrespect to the future taxation framework for the mining industry in thecountry. This remains at a very initial stage and forms part of longer termeconomic plans whereby a range of options for increasing the government'srevenue base are being considered. With respect to our existing operations,each of the four sites has legally binding Mineral Development Agreements inplace which govern the tax treatment of the assets. As such, any changes to thetax legislation would only be applicable to future projects. At the same time,we have been working with the tax authorities in Tanzania to finalise theagreement covering the repayment of fuel excise levies and Value Added Tax("VAT") owed to ABG. In this context, we will also consider the broader taxstatus of ABG in Tanzania and its ongoing contribution to the country in orderto ensure we have the optimum long term structure for the Company and all ofits stakeholders.

North Mara investigations and licence renewal

As previously announced, we have launched an internal investigation into thecircumstances surrounding the site intrusion which occurred at North Mara inMay, as have the Tanzanian police. Both of these investigations are ongoing. Todate, preliminary findings from the police work have lead to a number ofarrests of individuals suspected of having been involved in provoking ororganising the incident as well as other illegal activities in the area.Further details on the outcome of investigations will be communicated as andwhen available. In conjunction with these efforts, we are progressing ourcommunity relations programmes and engagement with the Tanzanian government andother local stakeholders, to address law and order issues around North Mara andin the wider community and to build awareness on the inherent dangersassociated with illegal mining and mine site intrusions.

We have submitted all of the necessary documentation for the renewal of our mining licence at North Mara and await the formation of a formal Mining Advisory Board by the Ministry of Energy & Minerals for purposes of granting a final approval of the application. Should this stage of the administrative process be delayed, the terms of our existing licence should continue to apply, to ensure that there is no disruption to our mining activities.

Power supply

With its significant reliance on hydro power generation, the Tanzanian powernetwork has been under particular strain during the first half of the year, andcontinues to be, as a result of unusually low rainfall levels. This has beenexacerbated by planned maintenance work at gas fields which also supply thenetwork as well as lower levels of reliability in the transmission network.This has primarily impacted Buzwagi, given the existence of diesel generatingcapacity at the other mines, although there has been some impact across all ofour assets during the reporting period. The back-up power installed at Buzwagishould help to alleviate some of the issues caused by interruptions to thepower supply at this operation. We are also working with TANESCO, the statenational power utility, to ensure ongoing stability of supply to our operationsand to provide whatever technical assistance we can to improve performance ofthe network. At the same time, the government has also committed to significantadditional power generation capacity which should help to alleviate theseissues in the longer-term. We will continue to monitor power supplyinterruptions and the impact that this may have on our operations throughoutthe remainder of the year.

For further information, please visit our website: www.africanbarrickgold.com or contact:

African Barrick Gold plcGreg Hawkins, CEO

Andrew Wray, Head Corp. Devt. & IR +44 (0)207 129 7150

Finsbury (Financial Public relations firm) +44 (0)20 7251 3801

Charles ChichesterAbout ABG ABG is Tanzania's largest gold producer and one of the five largest goldproducers in Africa. We have four producing mines, all located in North WestTanzania, and several exploration projects at various stages of development.With a high-quality asset base, solid growth opportunities and a clearstrategy, we have the objective of increasing our existing production to onemillion ounces per year by 2014.

We aim to achieve this by:

driving operating efficiencies to optimise production from our existing asset base;

growing through near mine expansion and development of advanced-stage projects; and

organic greenfield growth and acquisitions in Africa.

Maintaining our licence to operate through acting responsibly in relation toour people, the environment and the communities in which we operate is centralto achieving our objectives.ABG is a UK public company with its headquarters in London. We are listed onthe Main Market of the London Stock Exchange under the symbol ABG. Historicallyand prior to our initial public offering (IPO), our operations comprised theTanzanian gold mining business of Barrick Gold Corporation (Barrick), ourmajority shareholder. ABG reports in US dollars in accordance with IFRS asadopted by the European Union, unless otherwise stated in this report.

Presentation and conference call

A presentation will be held for analysts and investors on 26 July 2011 at 9.00 am London time. A dial in facility will be available as follows:

Participant dial in: +44 (0) 203 003 2666Password: ABG Interim Results

A second conference call will be held for North American analysts and investors on 26 July at 9.00 am EDT with the same dial in.

There will be a replay facility available until 2 August 2011. Access detailsare as follows:Replay number: +44 (0) 208 196 1998Replay PIN: 4230534#FORWARD LOOKING STATEMENT

This report includes "forward-looking statements" that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words 'plans,' 'expects,' 'anticipates,' 'believes,' 'intends,' 'estimates' and other similar expressions.

All forward-looking statements involve a number of risks, uncertainties andother factors. Although ABG's management believes that the expectationsreflected in such forward-looking statements are reasonable, investors arecautioned that forward-looking information and statements are subject tovarious risks and uncertainties, many of which are difficult to predict andgenerally beyond the control of ABG, that could cause actual results anddevelopments to differ materially from those expressed in, or implied orprojected by, the forward-looking information and statements contained in thisreport. Factors that could cause or contribute to differences between theactual results, performance and achievements of ABG include, but are notlimited to, political, economic and business conditions, industry trends,competition, commodity prices, changes in regulation, currency fluctuations(including the US dollar; South African rand and Tanzanian shilling exchangerates), ABG's ability to recover its reserves or develop new reserves,including its ability to convert its resources into reserves and its mineralpotential into resources or reserves, and to timely and successfully processits mineral reserves, risk of trespass, theft and vandalism, changes in itsbusiness strategy, as well as risks and hazards associated with the business ofmineral exploration, development, mining and production. Accordingly, investorsshould not place reliance on forward looking statements contained in thisreport.The forward-looking statements in this report reflect information available atthe time of preparing this report. Subject to the requirements of theDisclosure and Transparency Rules and the Listing Rules or applicable law, ABGexplicitly disclaims any obligation or undertaking publicly to release theresult of any revisions to any forward-looking statements in this report thatmay occur due to any change in ABG's expectations or to reflect events orcircumstances after the date of this report. No statements made in this reportregarding expectations of future profits are profit forecasts or estimates, andno statements made in this report should be interpreted to mean that ABG'sprofits or earnings per share for any future period will necessarily match orexceed the historical published profits or earnings per share of ABG or any

other level. AFRICAN BARRICK GOLD LSE: ABG TABLE OF ContENT Page Key statistics 7 Market overview 8 Operating update 9 HSE and community relations update 14 Exploration and development update 15 Financial update 21 Non-IFRS measures 26 Principal risks and uncertainties 28 Statement of directors' responsibility 28 Auditors review report 29

Consolidated income statement and statement of comprehensive income 30

Consolidated balance sheet 31 Consolidated statement of changes in equity 32 Consolidated statement of cash flows 33 Notes to the consolidated interim financial statements 34 Key statisticsAfrican Barrick Gold plc Six months Three months ended ended 30 June 30 June 2011 2010 2011 2010 Operating results Tonnes mined (thousands of tonnes) 10,901 10,278 22,660

19,616

Ore tonnes mined (thousands of tonnes) 1,614 2,107 3,223 4,226

Ore tonnes processed (thousands of tonnes) 1,693 1,939 3,613 3,790

Process recovery rate (percent) 88.7% 86.5% 87.9% 85.7% Head grade (grams per tonne) 3.6 3.3 3.4 3.4

Attributable gold production (ounces)¹ 171,950 179,113 345,857 356,208

Attributable gold sold (ounces)¹ 185,080 173,374 357,082

358,098

Copper production (thousands of pounds) 4,068 3,955 7,809 7,038

Copper sold (thousands of pounds) 4,147 3,237 7,882 5,733 Cash cost per tonne milled² 85 49 78 50 Per ounce data Average spot gold price³ 1,506 1,197 1,445

1,152

Average realised gold price² 1,524 1,205 1,461

1,155

Cash cost per ounce sold² 652 543 655

529

Amortisation and other cost per ounce² 168 144 172

142

Total production costs per ounce sold² 821 687 827

671 Cash Margin2 872 661 806 626 Average realised copper price ($/lb)2 3.89 3.05 4.20 3.41 Financial results (in $'000) Revenue⁴ 311,760 224,271 578,387 445,889 Cost of sales⁴ (176,487) (133,599) (344,639) (270,068) Gross profit 135,273 90,673 233,748 175,821 Corporate administration (7,667) (9,140) (20,525) (16,757) Exploration and evaluation costs (8,621) (762) (16,078) (2,590) Other charges (10,902) (9,965) (15,572) (13,224) Profit before net finance cost 108,083 70,806 181,573 143,250 Finance income 437 558 809 710 Finance expense (2,239) (236) (4,121) (723) Profit before taxation 106,281 71,128 178,261 143,237 Taxation expense (33,862) (23,980) (54,031) (43,035) Net profit 72,419 47,148 124,230 100,202 Attributed to: - Non-controlling interests 2,646 971 4,096 971 - Owners of the parent (net earnings) 69,773 46,177 120,134 99,231 Other Financial information

(in $'000 except per ounce and per share

figures) Cash and cash equivalents 455,077 334,429 455,077 334,429 Cash generated from operating activities 99,450 90,341 186,134 157,665 Capital expenditure⁵ 67,275 48,851 118,666 86,495 EBITDA² 140,072 96,399 244,927 196,254

Basic earnings per share (cents) 17.0 11.3 29.3

24.2

Operational cash flow per share 24.2 22.0 45.3

38.4 Equity 2,651,571 2,423,724 2,651,571 2,423,724

1 Production and sold ounces reflect equity ounces which exclude 30% of Tulawaka's production base.

2 Cash cost per tonne milled, average realised gold price, total cash cost perounce sold, amortisation and other costs per ounce, total production cost perounce sold, EBITDA and cash margin are non-IFRS financial performance measureswith no standard meaning under IFRS. Refer to 'Non IFRS measures' on page 26for definitions.

3 Reflects the London PM fix price.

4 Restated to reflect the inclusion of co-product sales in revenue, refer to pages 21 and 35.

5 Excludes acquisition of Tusker Gold Limited and includes non-cash reclamation asset adjustments during the year

Market overview

Gold and Copper Prices

Gold prices have a significant impact on our operating earnings and ability togenerate cash flows. During the first 6 months of the year, the price of goldreached an all-time high, trading in a range of $1,319 to $1,553 per ounce, andclosed at $1,506 per ounce. Gold prices averaged $1,445 per ounce, a new 6month average record and a $293 per ounce improvement on the $1,152 per ounceaverage in the prior year period. Gold continued to be influenced by low USdollar interest rates, volatility in the credit and financial markets,particularly sovereign credit concerns, the pace of global economic recoveryand the monetary policies put in place by the world's most prominent centralbanks. The increased risk of sovereign debt defaults, highlighted by thecurrent situation in Europe, as well as the risk of higher US inflation and USdollar depreciation resulting from large US government deficits continues to bepositive for the price of gold. Gold prices also continue to be influenced by negative long-term trends inglobal gold mine production, the impact of central bank gold purchases andinvestor interest in owning gold. Gold has historically been viewed as areliable store of value in times of financial uncertainty and inflation, andhas generally been negatively correlated to the US dollar. As a result,investor interest in gold as an asset class has increased greatly, due to itsrole as a store of value and a de-facto global currency. We continue to deliverinto the market at spot prices and remain fully unhedged.ABG also produces copper as a co-product that is included in revenue butcredited against cost of sales and in the calculation of cash costs. Copperprices were volatile in the first 6 months of 2011, trading in a range of $3.94to $4.62 per pound. The average price in the first half of the year was $4.26per pound and the closing price was $4.27 per pound. Copper's volatility duringthe period occurred mainly as a result of uncertainty regarding the pace of theglobal economic recovery, amid a slower than expected return to strong growthin OECD countries and economic policy tightening in China. Copper prices areexpected to continue to be positively influenced by demand from Asia, a returnto global economic growth, availability of scrap metal and production levels ofmines and smelters in the future. Since Q4, 2010, the Company has entered intocopper and silver zero cost collars as part of a strategy to manage cash costsand co-product revenue. Currency Exchange RatesThe South African Rand and the Tanzanian Shilling depreciated during the first6 months of the year as investors moved to the more stable currencies ofgrowing OECD countries such as Australian and Canadian dollars. The Randtraded within a range of R6.57 to R7.34 and closed down 2% for the period atR6.77. The Shilling traded within a range of Tsh1457 to Tsh1619 and closed

down8% at Tsh1579.Fuel Prices

The price of crude oil traded in a range of $84 to $114 per barrel, closing at $95 per barrel and averaging $98 per barrel during the reporting period, compared to an average of $78 per barrel in the prior year period.

We directly consume around 0.3 million barrels of diesel fuel annually acrossall our mines. Diesel fuel is refined from crude oil and is therefore subjectto similar volatility affecting crude oil prices.

Operating update

Gold production for the six months ended 30 June 2011 was 345,857 ounces, justunder 3% lower than the prior year period. The decrease in production wasprimarily driven by our focus on waste stripping in the Gokona and Nyabiramapits at North Mara, which has resulted in the processing of lower grade orefrom stockpiles at this operation, when compared to the first half of 2010.

At

Buzwagi, production for the six months was just 2% lower than the correspondingperiod in 2010, despite the loss of production of around 15,000 ounces as aresult of the SAG mill motor failure in May. Notwithstanding the loss in millthroughput, Buzwagi increased head grade by 14% during the reporting period andplant recoveries by 10%. Furthermore we expect to recover a large part of thelost production during the second half of the year. Both Bulyanhulu andTulawaka saw increased production levels over the first half of the year, whencompared to the first half of 2010. At Bulyanhulu, increased tonnes mined drovethroughput at the plant and production up 3% year-on-year, while at Tulawakathe significantly improved underground mining performance reduced the relianceon low grade stockpiles and drove grades higher, with production up by 49%.Gold sold for the period totalled 357,082 ounces, in line with the figure forthe prior year period (358,098 ounces) and 3% higher than the ounces producedfor the reporting period. The differential compared to production was theresult of our continuing focus on optimising inventory levels, particularlyconcentrate at Bulyanhulu and Buzwagi. Going forward, our objective is tomaintain inventories around current levels and we would expect production andsales to be in line.

Cash costs for the reporting period were $655 per ounce sold which was 24% higher than the prior year period ($529). The key contributors to this increase were:

Higher labour costs across all mines sites and an increase in staffing at Bulyanhulu and Buzwagi: $45/oz

Lower capitalized costs at North Mara due to mine sequencing: $28/oz

Increase in contractor activity at Buzwagi and higher external services costs at North Mara: $28/oz

G&A cost increases from higher security, insurance and administrative services: $20/oz

Energy costs from higher electricity consumption and increased diesel prices: $17/oz

These increases were partially offset by increased co-product revenues.

Cash cost per tonne milled for the six months ended 30 June 2011 was $78 pertonne compared to $50 in the prior year period, primarily as a result of theimpact of higher cash costs and lower tonnes milled principally at Buzwagi,when compared to 2010. Tonnes mined for the six months ended 30 June 2011 of 22.7 million were 16%higher than the prior year period. Although there were increases at all fouroperating mines, the increase is largely due to the Gokona waste stripping atNorth Mara and waste stripping at Buzwagi, which was brought forward to helpmitigate the impact of the SAG mill motor failure on the overall miningschedule.Tonnes processed were 3.6 million for the reporting period, 5% lower than theprior year period (3.8 million). This was driven by lower availability of theBuzwagi processing plant during the SAG mill motor failure, partially offset byincreased tonnes processed at North Mara and Bulyanhulu due to increased oretonnes mined.The head grade for the first six months of the year was 3.4 grams per tonnewhich remained in line with that of the prior year period. The increase ingrade at Buzwagi and Tulawaka relating to the higher mined grade was offset bythe planned lower grade at North Mara resulting from the increased processingof lower grade stockpiles. Bulyanhulu also saw a drop in grade over the period,as a result of a higher than expected proportion of production from long holeand alimak stopes with lower grades.Process recovery rates stood at 87.9% for the reporting period, an improvementon the first half of 2010 (85.7%), largely as a result of process improvementsat Buzwagi during the reporting period.Copper production for the six months ended 30 June 2011 of 7.8 million poundswas 11% higher than the prior year period (7.0 million pounds) as a result ofincreased yields at Bulyanhulu and Buzwagi.Mine site summary Three months ended Six months ended Bulyanhulu 30 June 30 June 2011 2010 2011 2010

Underground ore tonnes hoisted Kt 271 225 538 470

Ore milled Kt 286 246 539 477 Head grade g/t 8.3 9.6 8.6 9.3 Mill recovery % 90.4% 92.2% 91.1% 92.0% Ounces produced oz 69,272 70,188 135,537 131,857 Ounces sold oz 72,698 54,791 141,805 121,985 Cash cost/ounces sold $/oz 573 575 578 540 Cash cost per tonne milled $/t 146 128 152 138 Copper production Klbs 2,186 2,225 4,224 3,938 Copper sold Klbs 2,202 1,709 4,141 3,339 Capital expenditure $('000) 18,553 19,388 34,769 32,789 Gold production at Bulyanhulu for the first half of the year was 135,537ounces, a 3% increase over the prior year period. This increase was primarilydriven by increased ore tonnes hoisted and improved mill throughput compared tothe prior year, partially offset by an 8% decrease in head grade. The reducedgrades resulted from lower than expected availability of primary long holestopes as a result of blockages to one of the paste fill lines as well as lowergrades from alimak stoping areas. This lower mine grade combined with lowerrecoveries in the CIL circuit due to high carbon loadings and repairs to thetailings lines led to a marginally lower recovery rate for the first half ofthe year of 91.1%.Cash costs for the first half of the year were $578 per ounce sold, which was7% higher than the prior year period ($540). Cost pressures were evident inseveral areas, principally labour, energy and supplies. The increase in labourcosts was a combination of a rise in staffing levels, together with annualsalary increases. Higher levels of mining and milling activity were alsoreflected in energy, external services and maintenance costs. This waspartially offset by higher copper revenue driven by both volume and price. As aresult, cash costs per tonne milled for the reporting period were $152 comparedto the prior year period of $138.In response to these cost pressures, a number of projects have been undertakento optimise productivity at the mine. These include improvements to the shaftdewatering system and the installation of an underground workshop. The newshaft dewatering system includes clarifiers, settlers and underground mudpresses for solid liquid separation which allow clean rather than dirty waterto be pumped to surface, requiring much less maintenance and thereby reducingthe risk to production interruptions. The underground workshop will bringsignificant benefits in improving the maintenance of equipment and fleet whichwas previously maintained on an ad hoc basis underground or needed to betransported to surface for maintenance. This will result in improvedefficiencies and availability of equipment.Capital expenditures for the first half of the year were $34.8 million, a 6%increase on the prior year period ($32.8 million). Underground developmentcosts amounted to $15.7 million while a further $9.0 million was spent on mineequipment purchases, $4 million on the support fleet, $1.2 million on thetailings facility expansion and the balance on sustaining capital.An update on investigations following the rockfall incident which we reportedin April this year is provided as part of our HSE and Community RelationsUpdate.Mine site summary Three months ended Six months ended North Mara 30 June 30 June 2011 2010 2011 2010 Tonnes mined Kt 6,254 5,133 12,390 9,644 Ore tonnes mined Kt 668 764 947 1,447 Ore milled Kt 751 691 1,500 1,338 Head grade g/t 2.3 2.8 2.1 3.0 Mill recovery % 83.8% 84.5% 81.4% 82.8% Ounces produced oz 46,003 51,623 83,602 105,531 Ounces sold oz 49,700 53,588 85,650 108,056 Cash cost/ounces sold $/oz 853 513 814 479

Cash cost per tonne milled $/t 56 40 46 39

Capital expenditure $('000) 24,468 20,222 52,143 36,682

The plan for 2011 at North Mara continues to focus on the significant waste stripping programme in the Gokona and Nyabirama pits in order to be able to access higher grade material in the coming years. This will, as expected, deliver lower production levels throughout 2011, although we anticipate improvements later in the year. There will also be much higher movement of waste material, increased reliance on lower grade stockpiles, and additional capital investment compared to the prior year, as a result of this exercise.

Gold production at North Mara for the first half of the year was 83,602 ounces,21% lower than that of the prior year period which totalled 105,531 ounces.Total tonnes mined increased 28% on the prior year period due to thesignificant increase in waste stripping. Ore tonnes mined decreased 35% on theprior year period with a greater reliance on the processing of lower grade orestockpiles to keep the process plant at full capacity. As a result, both thehead grade and recoveries were lower year-on-year although, as expected, theydid improve in the second quarter when compared to the first quarter of 2011.Cash costs for the reporting period were $814 per ounce sold, 70% higher thanthat of the prior year period ($479), while cash costs per tonne milled rose18% to $46. The primary factors behind this increase were the lower capitalisedstripping costs of $10 million mainly due to permitting delays for waste dumpswhich resulted in higher ore tonnes being mined, increased external services(principally maintenance and repair/drilling contracts) and higher energy costsdriven by increased mining and milling activity as well as greater reliance ondiesel generated power during power outages. On a per ounce basis theseincreases were compounded by the lower production base in the first half of theyear, when compared to the first half of 2010.Capital expenditures for the reporting period were $52.1 million, 42% higherthan the prior year period ($36.7 million). Key areas of expenditure were $16.6million capitalised waste stripping costs, $7.9 million spent on gold plantrecovery improvement project, $5.6 million in capitalised drilling of theGokona/Nyabirama underground project, a $4.8 million investment in the supportfleet and the balance relating to sustaining capital expenditures.An update on our community relations activities following the site intrusionswhich occurred in May is provided as part of our HSE and Community RelationsUpdate.Mine site summary Three months ended Six months ended Buzwagi 30 June 30 June 2011 2010 2011 2010 Tonnes mined Kt 4,347 4,904 9,672 9,466 Ore tonnes mined Kt 646 1,101 1,677 2,273 Ore milled Kt 583 916 1,423 1,807 Head grade g/t 2.5 2.0 2.4 2.1 Mill recovery % 89.5% 80.3% 88.0% 80.3% Ounces produced Oz 41,613 48,254 97,926 99,558 Ounces sold Oz 46,932 56,641 101,033 107,723 Cash cost/ounces sold $/oz 566 510 620 545 Cash cost per tonne milled $/t 46 32 44 33 Copper production Klbs 1,882 1,730 3,585 3,100 Copper sold Klbs 1,945 1,528 3,741 2,394 Capital expenditure $('000) 17,916 2,580 20,900 8,014 Gold production at Buzwagi for the first half of the year was 97,926 ounces, a2% decrease over the prior year period. This was lower than initially expected,primarily due to the failure of the SAG mill motor in the second half of May,following an attempted plant restart after a power outage. Given the complexityof removing and replacing a critical and very large piece of plant equipment,several weeks' production were lost. However, advantage was taken of thisdowntime to bring forward scheduled maintenance programmes elsewhere in theplant. Approximately 15,000 ounces of gold production were lost as a result ofthe plant downtime, although we expect to largely recover this over theremainder of the year. Production was also impacted, albeit to a lesser extent,by flooding in the pit in late March/early April which hampered the movement ofhigh grade ore tonnes. We are implementing a range of measures to mitigate theimpact of both of these incidents on the overall mining schedule. We willcontinue to work with the state power utility TANESCO in order to seek toimprove the quality and reliability of the power supply to Buzwagi. In themeantime, we have installed 6MW of back-up spinning diesel power ahead of thetargeted completion date and are beginning to see the positive impact of this.The lower plant throughput experienced during the reporting period was in partoffset with a 14% increase in head grade when compared to the prior year perioddue to the processing of higher grade ore, as well as a 10% increase inrecoveries due to a process improvement in the flotation tanks resulting inhigher recoveries achieved for concentrate. During the plant shutdown, themining focus was moved to accelerating waste stripping activities, resulting ina decrease in ore tonnes mined when compared to the prior year period. Copper production for the first half of the year was 3.6 million pounds, 16%higher than the prior year period (3.1 million pounds). This was mainly due tothe flotation tank improvements mentioned above which increased recoveries forconcentrate.Cash costs for the first half of the year were $620 per ounce sold, 14% higherthan the prior year period ($545). The main elements impacting on cash costswere increased labour costs as a result of inflationary increases and increasedheadcount, specifically in the security and mine production areas, which alsorequired investment in additional expatriate skills; increased usage andpricing for consumable costs specifically relating to blasting, drilling andtyres; and increased external services costs relating to the maintenance andrepair contractors ("MARC") costs to support a larger fleet and highercomponent replacement costs as the mine fleet has reached its third year ofcontinuous operation. These increases were partially offset by $5.4 million ofcapitalised mining costs in the second quarter as a result of the increasedlevels of waste stripping during the plant shutdown as well as higherco-product revenue. It is expected that cash costs per ounce will improve inthe second half of the year in line with increased production and improvedplant availability. Cash costs per tonne milled for the reporting period increased to $44 per tonnemilled compared to $33 per tonne milled for the prior year period, due to thecost pressures already explained above combined with a decrease in tonnesmilled due to the plant shutdown.Capital expenditures for the reporting period were $20.9 million,161% higherthan the prior year period ($8.0 million). Capital investment during the firsthalf of the year was primarily focussed on an investment in the haul truck andsupport vehicle fleet of $12.4 million, capitalised waste stripping expenditureof $5.4 million, processing plant upgrades of $2.3 million with the balancerelating to sustaining capital expenditures.Mine site summary Three months ended Six months ended Tulawaka (reflected as 70%) 30 June 30 June 2011 2010 2011 2010

Underground ore tonnes hoisted Kt 30 17 60 36

Ore milled Kt 74 86 151 169 Head grade g/t 6.7 3.5 6.3 3.8 Mill recovery % 95.0% 92.9% 94.3% 93.3% Ounces produced oz 15,062 9,048 28,792 19,262 Ounces sold oz 15,750 8,355 28,595 20,335 Cash cost/ounces sold $/oz 645 759 686 641 Cash cost per tonne milled $/t 138 74 130 77 Capital expenditure (100%) $('000) 5,384 3,171 9,279 5,450

Attributable gold production at Tulawaka for the first half of the year was28,792 ounces, a 49% increase over the prior year period which totalled 19,262ounces. The increase in production was as a direct result of mining high gradeunderground stopes supported by improved mine equipment availability. Thisdirectly translated into a head grade of 6.3 g/t, compared to 3.8 g/t in theprior year period, as well as improved recoveries. Lower throughput was theresult of the increased proportion of feed coming from the higher grade orewhich has a higher grind index. Cash costs for the first half of the year were $686 per ounce sold, 7% higherthan the prior year period ($641). The key areas of higher costs were labourcosts as a result of wage inflation and increased headcount to manage thelife-of-mine ("LOM") extension, as well as higher external services costs whichwere driven by increased underground mine activity. The increase in cash costswas partially offset by an increase in capitalised mining costs due to theincrease in underground development associated with the LOM extension and alsothe higher production base for the period.

Cash costs per tonne milled for the reporting period increased to $130 per tonne milled compared to $77 per tonne milled in the first half of 2010 due to the cash cost pressures and the decrease in tonnes milled.

Capital expenditures for the reporting period were $9.3 million, 70% higherthan prior year period ($5.5 million). The capital expenditure was focused onincreased investment in order to extend the mine life. Specific spendingincluded $2.9 million relating to capitalised underground development costs,$2.8 million relating to security infrastructure, in particular the parameterwall, and $1.7 million relating to capitalised drilling expenditure.

HSE and community relations update

Maintaining our licence to operate through acting responsibly in relation toour people, the environment and the communities in which we operate is centralto achieving our objectives and we remain firmly committed to carrying out ourbusiness in a safe and responsible manner within the environment andcommunities in which we operate.We have carried out a thorough investigation into the tragic rock fall thatclaimed the life of one of our employees at Bulyanhulu earlier this year and weare in the process of implementing the corrective actions identified to helpprevent this type of accident in the future. Our Lost Time Injury FrequencyRate ("LTIFR") of 0.14 for the first half of the year was in line with thecorresponding period in 2010 and we have several safety initiatives underway tohelp improve this performance. One of the most important initiatives is a focuson Critical Risks and implementing Critical Risk Standards across ABG.An Occupational Health Manager has been employed to better support ouroperations in the adoption of our Health Standards. These standards focus onhelping our employees remain fit for duty and address such issues as dust,noise, ergonomics, fatigue, and other health related areas. This work will beongoing for the remainder of the year as part of overall HSE reviews. Duringthe first half of the year Health Impact Assessments were conducted at Buzwagiand the Golden Ridge project.ABG's environmental focus continues to be the Environmental Management Systeminstallation to support environmental compliance at all our operations, withtwo sites having gone through environmental compliance audits in the first halfof the year. ABG's site with the shortest life of mine, Tulawaka, has spenttime on more detailed closure planning. Permitting of both greenfields andbrownfields projects is ongoing with a strong Government relations dialogueresulting in a better understanding between ABG and the regulators. Although we continue to operate in a challenging environment, our communityrelations initiatives are seeing overall improvements in the relations betweenour operations and their local stakeholders. The mine site community relationsteams have benefitted from an increased focus on training and cross-functionalcollaboration which is underpinned by a new two-year strategy for 2011-2012.Sites' social obligation registers have been reviewed to ensure that allcommitments to our stakeholders are understood and progressed. During the firsthalf of the year, the Company's grievance mechanism was updated to better allowlocal stakeholders to have any complaints against our operations investigatedand resolved.North Mara remains the key area of focus for the community relations function,particularly the re-establishment of meaningful dialogue with localstakeholders and the management of trespassing and illegal mining activity. Aspreviously reported in May, a large number of intruders, many of whom werearmed, stormed the ore stockpile at North Mara. A confrontation between theintruders and the Tanzanian police force ensued, during which a number ofintruders were injured, several fatally. A number of police officers alsosustained injuries as a result of this confrontation. We have been cooperatingclosely with the Tanzanian authorities as part of overall investigations intothe circumstances surrounding this incident. We are also investigating a numberof recent allegations of crimes on our property including corruption, assaultand trespass.As part of community relations efforts, we are progressing our engagement withthe Tanzanian government and other local stakeholders to address the law andorder issues and lack of police resources around North Mara and in the widercommunity. In addition, during the reporting period we established a newpartnership with Search for Common Ground ("SFCG"), a leading international NGOthat has been in the Mara region meeting with the community. SFCG is providingtraining on human rights to the police and is engaged in conflict minimizationtraining.

We are also making numerous improvements to the security function at North Mara, with the objective of enhancing the security environment at the mine in order to protect employees and the wider community. This involves:

A review of the security perimeter at North Mara, resulting in the installation of additional perimeter fencing and walls.

Installing CCTV cameras in sensitive areas.

Implementing personal radio tracking.

Upgrading procedures for escalation of human rights allegations.

Strategically redeploying female ABG security officers (who make up 25% of the security force).

Reviewing options for in-car video cameras.

Upgrading mandatory human rights training for ABG security.

Conducting a safety education programme with the local community to improve understanding of the inherent dangers associated with illegal mining and intrusions on to the mine site.

We will provide updates on these initiatives as they are pursued, and will continue to engage with stakeholders to identify other initiatives to strengthen the security environment in and around our operations.

Exploration and development update

Exploration and development during the first half of the year continued tofocus on ABG's strategy of organic growth through near-mine exploration,resource expansion, optimisation of existing assets through identification anddelineation of higher grade satellite deposits, regional exploration for newdiscoveries and evaluation of acquisition opportunities throughout Africa. Theexploration teams were principally focused on advancing the regionalexploration programmes as well as organic growth projects around each of thecurrent Tanzanian operations. Significant progress has been made on allprojects.At the Nyanzaga Project, reverse circulation and diamond drilling continuedacross the property with 51,361 metres of drilling completed. The focus atNyanzaga was on resource drilling at the Tusker and Kilimani projects. Step-outdrilling at Tusker continued to encounter broad high grade zones at depth andnear-surface strike extensions on the northern and southern ends of theresource, while infill drilling on Tusker and Kilimani resource areas continuedto confirm grade and continuity of the overall resource. A revised resource isscheduled for completion during the third quarter.

At Tulawaka East Zone Underground, exploration drilling continued to extend the known high-grade mineralised shoots below current reserves, indicating potential to extend mine life beyond 2012.

The Golden Ridge Project feasibility study, assessing the potential for ore tobe trucked to Buzwagi, continued during the first half of 2011 and is close tocompletion. An initial resource of 527Koz @ 2.94g/t Au Indicated and 152Koz @2.52g/t Au Inferred was declared in March, incorporating infill drilling andresults of the metallurgical test-work undertaken in late 2010. Further infilldrilling commenced at the end of the reporting period aimed at upgradinginferred resources to measured and indicated.At North Mara, positive results were returned from deep exploration holestargeting 200-500m below the planned final Stage-3 Gokona open pit. The resultsfrom the deep exploration drilling, the positive scoping study results, and theinitial underground resource of 370Koz @ 8.29g/t for Gokona-Nyabigena haveresulted in ABG undertaking an aggressive 62,000 metre infill drill programmeat Gokona targeting underground resources of more than 1Moz. A feasibilitystudy on the current underground deposits is ongoing and expected to becompleted in the coming weeks.Additionally, at North Mara, a 30,000 metre programme of infill drillingcommenced at Nyabirama testing below the final planned open pit for potentialmineable underground resources. To date, 15,298 metres have been drilled of theintended programme, and results to date have been encouraging with multiplehigh grade zones intercepted.

At the Bulyanhulu Upper East project the feasibility study is being completed and a test stope is being initiated to assess the proposed mining method as well as geotechnical conditions in the zone.

Also at Bulyanhulu a further study is being initiated to assess the viability of expanding the process plant in order to recover gold from the tailings facility following initial metwork indicating economic grades within the tailings

ORGANIC GROWTH PROJECTSTULAWAKA

East Zone Underground Extensions

A total of 62 diamond core holes for 9,675 metres have been drilled to test theTulawaka East Zone underground extensions between Level 10 and Level 15 (130mto 250m below completed pit floor). A second underground drill rig wascommissioned during the reporting period in order to complete the currentprogramme and complete an update of resources and reserves and a new life ofmine plan. Drilling to date shows the mineralised quartz veins extend at leastdown to Level 13, and has intersected visible gold within quartz veining inseveral drill holes. A selection of the intersections returned during theperiod from the 62-hole underground exploration drill programme include:TUGD00305 - 1.5m @ 14.7g/t Au from 103.5mTUGD00306 - 3.0m @ 5.62g/t Au from 105m

TUGD00310 - 1.0m @ 7.30g/t Au from 67m

TUGD00315 - 1.6m @ 7.81g/t Au from 74.4m

TUGD00317 - 3.2m @ 23.6g/t Au from 64.85m

TUGD00322 - 2.5m @ 11.3g/t Au from 71.0m

Diamond drilling continues to test depth, plunge and strike extensions of themineralised lodes between Levels 10 and 12, below current reserves in the EastZone, and is currently focused on increasing reserves and resources for themid-year update.

Further information with respect to the potential mine life extension at Tulawaka will be released once an updated model and reserve optimisation is completed later in the second half of the year.

GOLDEN RIDGE

An initial open pit mineral resource of 527Koz @ 2.94g/t Au Indicated and152Koz @ 2.52g/t Au Inferred was declared for Golden Ridge during the reportingperiod, validating the earlier desktop work investigating the potential totruck Golden Ridge ore to the Buzwagi mine. Further exploration drillingprogrammes are currently underway to upgrade inferred resource with tighterdrill spacing, and to investigate extensions of the higher grade shoots on themargins of the current pit design in order to delineate additional higher graderesource ounces, particularly between the northern and southern zones of themain pit. The drill programme commenced in June with two rigs on site, and bythe end of June 2011 a total of 33 reverse circulation holes and pre-collarholes had been completed for an advance of 2,547 metres.The feasibility study on Golden Ridge is close to completion and continues toshow positive economics for the project. In order to further improve the returnprofile of this project in line with internal targets. Further analysis hascommenced with the objective of optimising and fine-tuning the assumptionsbuilt into the feasibility study model. This is likely to run for severalmonths, although our objective is to provide a detailed update on thefeasibility study and this process within the next three months, together withfurther clarity on timing.NORTH MARA

At North Mara the focus year-to-date has been on exploration drill testing fordip and plunge extensions of higher-grade lodes at depth in the Gokonamineralised system, infill drilling of Inferred resources beneath Gokona andNyabirama planned final open pits and a feasibility study on the undergroundpotential at Gokona and Nyabigena. Significant progress has been made on theGokona Extensions exploration programme, the Nyabirama Deeps infill programme,and the Gokona-Nyabigena underground feasibility study is moving towardcompletion. The aim of all these programmes is to look at delineating, andultimately producing, higher-grade resources that could add high margin,incremental ounces to the North Mara production profile from 2013 and at thesame time extend the life of mine.

Gokona-Nyabigena Underground Extensions

Exploration drill programmes at Gokona to investigate extensions of thisunderground deposit and to test for additional high-grade shoots, particularlybetween Gokona West and Gokona East Deeps lodes, were completed early in 2011. Results from the deep exploration drilling programme were positive and show thepotential to extend several high grade lodes at depths greater than 500m belowthe planned final open pit design limits and beyond. A selection of resultsreceived in 2011 are shown in the figure below and include:

GKD247W1 - 4m @ 8.78g/t Au from 715m and 81m @ 2.95g/t Au from 763m (including 7m @ 14.6g/t Au)

GKD249W1 - 51m @ 2.69g/t Au from 566m, including 4m @ 7.47g/t Au from 581m

Schematic Long Section Gokona Deeps showing selected results of the exploration drill programme

[For picture see www.africanbarrickgold.com]

Based on the success of the exploration extension programmes and a positivescoping study looking at the underground potential of the Gokona and Nyabigenadeposits, a significant resource drill-out programme beneath the planned finalGokona open pit is being undertaken and consists of an extensive (62,000m)infill reverse circulation and diamond core programme. This programme is aimedat increasing the initial Indicated resource of 370Koz declared in late 2010into an Indicated resource in excess of 1Moz, thereby improving the potentialto significantly extend the mine life and production profile at North Mara. Theinfill drill programme commenced in April 2011, slightly behind schedule due tosite access and rig availability issues, and by the end of the reporting perioda total of 18 holes for an advance of 7,088 metres had been completed. Thenumber of drill rigs on site is currently being increased in order to improveproductivity.Assay results have been received for a limited number of holes to date and theintercepts are consistent in width and grade with the broader spaced drilling,and therefore generally in line with expectations. Selected results are shownbelow and the target area is also highlighted in the schematic long sectionbelow:

GKRD301 5m @ 10.2g/t from 99m

2m @ 8.37g/t from 257m

GKRD302A 4m @ 4.16g/t from 125m

3m @ 9.32g/t from 142m 5m @ 6.47g/t from 156m 8m @ 5.49g/t from 242m

GKRD303 7m @ 4.49g/t from 153m

The feasibility study to assess the Gokona-Nyabigena underground potential isclose to completion, following which there will be a thorough internal reviewprocess. Following this, the objective is to seek Board approval by earlySeptember to move ahead with project execution and we intend to communicatefull details at that time.

Schematic long section of Gokona-Nyabigena showing resource outlines, potential underground and current area of infill drilling

[For picture see www.africanbarrickgold.com]

Nyabirama Deeps Resource Definition and Extension Drilling

The Nyabirama Deeps programme is aimed at defining underground or push-backounce potential from areas previously not able to be drilled from the open pitor during early exploration drilling. Infill drilling is targeting theconversion of approximately 700Koz of resources from Inferred to Indicatedstatus. Extension drilling is also being undertaken with the aim of identifyingadditional ounces east and west along strike. The current drill programmeconsists of approximately 37,000 metres of reverse circulation and diamond coredrilling. To date 15,296 metres has been drilled with holes returning multiplezones of high grade mineralisation. Below is a selection of results including:

NBD001 12.0m @ 3.12g/t Au from 193m

2.8m @ 70.4g/t Au from 241.43m 6.6m @ 3.63g/t Au from 266.38m

NBRD003 2.0m @ 9.85g/t Au from 91m

13.0m @ 11.89g/t Au from 197m 7.0m @ 5.91g/t Au from 223m

NBRD008 3.0m @ 4.25g/t Au from 101m

4.0m @ 7.81g/t Au from 134m 5.0m @ 6.03g/t Au from 239m 8.0m @ 5.59g/t Au from 250m

NBRD014 6.0m @ 4.16g/t Au from 254m

7.0m @ 21.4g/t Au from 272m 4.0m @ 9.39g/t Au from 297m 4.0m @ 9.15g/t Au from 344m 4.0m @ 10.0g/t Au from 353m

NBRD017 5.0m @ 23.8g/t Au from 254m

21.5m @ 3.20g/t Au from 272m 11.0m @ 2.67g/t Au from 297m 3.0m @ 5.52g/t Au from 344m

Whilst these initial results are very encouraging it is still early in the programme to attribute particular significance to them. The next step upon completion of this phase of drilling will be to commission a scoping study to review the potential for an underground scenario.

Schematic cross section of Nyabirama drilling through holes NBRD008 and NBRD017

[For picture see www.africanbarrickgold.com]

BULYANHULU

Bulyanhulu Upper East Zone

The feasibility study for the Upper East project continued during the quarter,as did rehabilitation and dewatering work in this zone. The proposed test stopehas been designed and is in the process of being initiated, with theexpectation that it will run through to late in the fourth quarter. This willhelp assess the appropriate mining method for this area as well as providingadditional data on geotechnical and metallurgical considerations.The feasibility study has validated the attractive return profile of theproject, subject to the confirmatory work being carried out through the teststope and additional analysis. We aim to provide a detailed update on thisproject during the fourth quarter, subject to the final confirmatory work bythe end of the year, at which point Board approval would be sought.

GREENFIELD PROJECTS

Nyanzaga Project

Diamond core and reverse circulation drilling at the Nyanzaga project over thefirst half of the year has focused on infill and step-out drill testing at boththe Tusker and Kilimani project areas in order to expand the known resourcesand increase the confidence levels of previous resource calculations as well asto improve the overall grade profile and potential project economics. Infilldrilling continues to confirm the continuity of gold mineralisation identifiedby the earlier broader spaced drilling and step-out drilling along strike andat depth has identified several zones with a higher grade profile thanpreviously seen. Notable recent intersections at Tusker include:

NYZRCDD0297 - 48m @ 7.71g/t Au, including 4m @ 74.7g/t Au

NYZRCDD0329 - 232m @ 3.97g/t Au, including 3m @ 18.9g/t and 10m @ 30.5g/t Au

NYZRCDD0330 - 72m @ 2.25g/t Au, including 10m @ 9.60g/t Au

NYZRCDD0345 - 89.8m @ 8.26g/t Au, including 45m @ 15.1g/t Au

NYZRCDD0359 - 218m @ 2.04g/t Au, including 19m @ 16.7/t Au

NYZRCDD0400 147m @ 3.36g/t Au, including 48m @ 7.77 g/t Au

In late July 2010, ABG commenced an intensive programme of reverse circulationand diamond core drilling at the Nyanzaga Project focusing on step-out andinfill drilling on the Tusker and Kilimani prospect areas. Drilling for the sixmonths from July to December 2010 on these prospects totaled 143 reversecirculation ("RC") holes and RC holes with diamond core tails ("RCDD") for atotal of 24,644 metres. The drill programme was expanded in 2011, based on thepositive 2010 results, with a planned programme of more than 50,000 metres ofstep-out and resource infill drilling, as well as reconnaissance drilling,planned across the Nyanzaga project area.By the end of the reporting period, a further 207 RC and RCDD holes had beendrilled across the project for 51,361 metres year to date bringing the projecttotal to 76,000 metres. Initially, these drill holes tested mineralisation atdepth and along strike of the Tusker and Kilimani mineralised zones, while inrecent months the focus has switched to predominantly resource infill drillingin order to determine a revised mineral resource for the project. Results fora further 70 holes were still pending at the end of June 2011.

The principal objectives of the ongoing drill programmes are to confirm the economically mineable resource and to expand the global resource through delineating strike and down-dip extensions to the Tusker and Kilimani mineralised systems, as well as investigating the potential to increase the overall grade of the resource. Drilling to date has identified strike and down-dip extensions to the known mineralised system and continues to identify higher grade zones that may be amenable to underground mining scenarios.

Tusker and Kilimani drill location plan with the recent 2011 holes shown separately

[For picture see www.africanbarrickgold.com]

At the Kilimani prospect, infill drilling continues to confirm the width, gradeand tenor of gold mineralisation within the oxide zone from the historicalbroader-spaced drilling. Until the most recent programme at Kilimani, goldmineralisation had only been identified in the oxide zone to a maximum depth of150m below surface. However, drill hole NYZRCDD0353 from the recent drillprogramme intersected significant primary mineralisation within brecciated andstrongly altered sediments, returning 22m @ 1.39g/t Au from 143m. Other notableintersections from the oxide zone of Kilimani include:

NYZRC0281 - 20m @ 1.63g/t Au, including 10m @ 2.58g/t Au

NYZRC0322 - 23m @ 4.70g/t Au, including 3m @ 32.2g/t Au

NYZRC0323 - 35m @ 1.87g/t Au, including 18m @ 3.09g/t Au

NYZRC0357 - 3m @ 10.2g/t Au

NYZRC0370 - 12m @ 4.57g/t Au

NYZRC0371 - 15m @ 4.10g/t Au

Revised 3D geology and grade models, incorporating the updated geological andstructural interpretations, as well as the recent drill results, are underwayand these models will be updated over the next two months as more data becomesavailable. We aim to provide a resource update for Tusker and Kilimani by theend of the year.Financial updateRevenueRevenue for the six month period ended 30 June 2011 of $578.4 million was 30%higher than the prior year period which totalled $445.9 million. Gold revenuetotalled $539.5 million and was 27% higher than the first half of 2010. Thisincrease was driven by a higher realised gold price of $1,461/oz in thereporting period compared to $1,155 /oz in the prior year period while ouncessold remained similar. Ounces sold exceeded production by 11,225 ounces mainlydue to concentrate ounces on hand at the end of 2010. Uncertainty in globalmarkets continued to support a strong demand for gold driving the average goldspot price to $1,445 per ounce for the first half of the year. This comparedfavourably to the average gold price of $1,152/oz in the first half of 2010.

Co-product revenue totalled $38.9 million for the first half of the year compared to $22.1 million in the same period of 2010. Co-product revenue increased by 76% due to the combination of a 37% increase in volume and 23% higher realised prices. Volume gains were driven by increased concentrate volumes from both Bulyanhulu and Buzwagi and higher copper yields delivered for the first half of the year.

In the fourth quarter of 2010, the Group reclassified copper and silver asco-product revenue to reflect their increased significance as a percentage ofrevenue. The table below provides a reconciliation between gold and co-productrevenue for the 6 months ended 30 June 2010. Three months ended Three months ended Six months ended 31 March 2010 30 June 2010 ($'000) 30 June 2010 Gold Revenue as previously stated 210,660 213,175 423,835 Plus: Co-product revenue 10,958 11,096 22,054 Total Revenue as restated 221,618 224,271 445,889 Cost of sales

Cost of sales for the six month period ended 30 June 2011 of $344.6 millionincreased by 28% from $270.1 million in the prior year. The key drivers for theincrease in cost of sales were the increase in direct mining costs of 32% from$191.5 million to $252.1 million, an increase in revenue related costs andhigher depreciation and amortisation from the higher capital investmentemployed in 2011.The direct mining cost increases are principally attributable to i) higherstaffing levels and salaries representing a 25% increase or $16.5 million fromthe prior period; ii) energy and diesel cost increase of $6.4 millionrepresenting an increase in the crude oil price, the main input of diesel costsand higher usage in the milling operations at North Mara and Bulyanhulu tomitigate the operational impact of intermittent power outages; iii) an increasein external services as new contracts were re-negotiated at North Mara andincreased mining fleet size at Buzwagi; iv) increased G&A costs from highersecurity, insurance and administrative services.Revenue related costs consisting of royalties and refining charges increased by$3.6 million or 14% driven by the increased revenue generated for the reportingperiod. Depreciation and amortisation for the six month period ended 30 June 2011 of$63.4 million increased 20% from the prior year period of $53.0 million and theincrease predominantly has been due to an increased capital base beingdepreciated.The table below shows a breakdown of ABG's cost of sales in the first half of2011 and 2010 respectively: Three months ended Six months ended ($'000) 30 June 30 June 2011 2010 2011 2010 Cost of Sales Direct mining costs 128,870 93,332 252,144 191,498

Third party smelting and refining fees 6,014 6,513 11,266

9,994 Royalty expense 9,614 8,161 17,875 15,572

Depreciation and amortisation 31,989 25,593 63,354

53,004 Total 176,487 133,599 344,639 270,068

See below a detailed breakdown of ABG's direct mining costs in the first half of 2011 and 2010 respectively:

Three months ended Six months ended ($'000) 30 June 30 June 2011 2010 2011 2010 Direct mining costs Labour 41,625 33,078 81,992 65,541 Energy and fuel 24,942 21,607 47,494 41,092 Consumables 21,535 20,766 46,037 41,403 Maintenance 17,334 16,219 35,602 32,047 External services 23,563 22,590 50,058 39,615 General administration costs 19,632 14,620 34,078 26,625 Capitalised direct mining costs (19,761) (35,548) (43,117) (54,825) Total direct mining costs 128,870 93,332 252,144 191,498

Individual cost components comprise:

Labour costs for the reporting period showed a 25% increase compared to the prior year period. This has been impacted by increased headcount (13% increase year-on-year) mainly at Buzwagi and Bulyanhulu and salary increases (11% increase year-on-year).

Energy and diesel fuel expenses account for all electricity, diesel fuel andoil/lubricant expenditures. Energy costs for the reporting period showed a 16%increase compared to the prior year period. The key drivers behind the increaserelated to electricity consumption which increased by 12% and diesel priceswhich reflected an 11% increase. The realised WTI crude oil cost per barrel,the key input of diesel, rose from an average of $78 in the first half of 2010to $98 in 2011 contributing to higher diesel fuel costs. A number of powerinterruptions during the first half of the year resulted in increased relianceon self generated power generated from diesel fuel.

Consumable costs showed an increase of 11% on the prior year period and reflected inflationary pressure existing in the industry mostly as a result of increased commodity prices derived from petrochemicals, steel and freight intensive supplies.

Maintenance costs on a comparable basis were 11% higher in the reporting periodthan in the corresponding period for 2010, primarily driven by plant breakdownsat Buzwagi and underground equipment repair at Bulyanhulu.External services comprise mainly MARC and drilling/geology services at Buzwagiand North Mara. MARC costs at Buzwagi increased due to the increase in size andage of the mining fleet. North Mara increased cost due to contract renewals athigher rates for drilling and MARC contracts.

General and administrative costs increased by 28% in the first half of the year, when compared to the prior year period, as a result of additional security costs and administrative services at Buzwagi and Tulawaka, and higher insurance premiums for 2011.

Capitalised direct mining costs consist of capitalised operating costs toreflect deferred stripping at North Mara and Buzwagi and underground minedevelopment at Bulyanhulu. The capitalisation levels dropped due primarily tolower deferred waste stripping levels at North Mara during the second quarterwhere permitting issues for waste rock dumping and water discharge held backwaste tonnes moved and focus was placed on moving more ore tonnes.

Cash costs per ounce sold

Cash costs for the first half of the year were $655 per ounce sold, a 24%increase year-on-year. The increase relates to inflationary cost pressuresreflected in increased labour, external services, administration and energycosts as well as increased selling related costs due to increased revenue. Alsocontributing to the increase is the impact of delayed waste stripping at NorthMara driving capitalised expenses lower. This was partially offset by increasedco-product revenue for the period under review.

The table below provides a reconciliation between cost of sales and total cash costs to calculate the cash cost per ounce sold.

Three months ended Six months ended ($'000) 30 June 30 June 2011 2010 2011 2010 Total cost of sales 176,487 133,599 344,639 270,068 Deduct: Depreciation and amortisation (31,989) (25,593) (63,354) (53,004) Deduct: Co-product revenue (19,401) (11,096) (38,883) (22,054) Total cash cost 125,097 96,910 242,402 195,010 Total ounces sold¹ oz 191,830 176,955 369,337 366,813

Consolidated cash cost per ounce $/oz 652 548 656

532 Equity ounce adjustment² $/oz 0 (5) (1) (3)

Attributable cash cost per ounce $/oz 652 543 655

529

1Reflects 100% of ounces sold.

2Reflects the adjustment for non-controlling interests at Tulawaka.

Corporate administration costs

Corporate administration expensesfor the first half of the year of $20.5million increased 22% from the prior year period ($16.8 million). Corporateadministration consisted of the costs associated with maintaining the Dar esSalaam, Johannesburg, and London offices. The increase in the reporting periodover the previous year can be explained by the additional costs incurred inrunning a publicly listed company that did not exist until the end of the firstquarter in 2010. This increase was partially offset by a reduction applied

to

the carrying value of share based remuneration schemes in the second quarter of 2011.

Exploration and evaluation costs

Exploration and evaluation costs focused on greenfield exploration andamounted to $16.1 million for the six month period ended 30 June 2011 comparedto $2.6 million incurred in the same period in 2010, with a significant step upin activity across a range of projects. Further detail is available in theExploration and Development update.

Other charges

Other charges for the six month period ended 30 June 2011 of $15.6 millionincreased on that of the prior year period ($13.2 million). Other chargescomprise one-off costs, foreign exchange losses, gains and losses on disposals,social development costs, asset write downs and certain provision movements.The increase was primarily driven by foreign exchange losses of $12.5 millionfor the reporting period, relating to the revaluation of indirect taxreceivables and cash balances denominated in Tanzanian Shillings, whichweakened against the dollar, as well as increased social development costs.This was in part offset by unrealised gains on copper and silver hedges.

Finance expense and income

The finance expense increased for the six month period ended 30 June 2011 to$4.1 million from the prior year period of $0.7 million. This was primarilydriven by the finance charge associated with the credit facility completed inthe fourth quarter of 2010 as well as an increased accretion charge associatedwith the quarterly update of the rehabilitation provisions.

Finance income relates predominantly to interest charged on non-current receivables and interest received on cash balances.

Taxation expense

Taxation expense increased for the six month period ended 30 June 2011 to $54.0million from the prior year period of $43.0 million following the improvementin financial results. As a result of the amount of available tax losses no cashtax was paid in respect of this charge for the period. The effective tax rateof 30% was in line with that of the prior year period.

Profitability and EBITDA

Net profit before non-controlling interests for the six month period ended 30June 2011 of $124.2 million increased 24% from the prior year period of $100.2million. The increase was predominantly driven by increased revenue of 30% as aresult of increased realised gold prices on similar volumes. The gross profitmargin for the reporting period was 40%, a slight increase over the prior yearperiod as improved revenues kept slightly ahead of increased costs of sales.The activities of exploration and corporate administration expanded to supportthe Company's growth strategy while the income tax rate and other charges werein line with the prior period resulting in higher net profits.

The net profit attributable to non-controlling interests for the reporting period increased by 322% to $4.1 million from the prior year period of $1.0 million due to increased production and net profits realised during the first half of the year at Tulawaka where ABG has a 70% interest.

A reconciliation between net profit for the period and EBITDA is presentedbelow: For the six months($'000) For the three months ended ended 30 June 30 June 2011 2010 2011 2010 Net Profit 72,419 47,148 124,230 100,202 Plus: Income tax expense 33,862 23,980 54,031 43,035 Plus: Depreciation and amortization 31,989 25,593 63,354 53,004 Plus: Finance expense 2,239 236 4,121 723 Deduct: Finance income (437) (558) (809) (710) EBITDA 140,072 96,399 244,927 196,254 EBITDA for the reporting period increased by 25% to $244.9 million, whencompared to the prior year period ($196.3 million), due to record gold pricesand increased co-product revenues for the company. This was partly offset byincreases in the direct mining cost base, revenue related costs (royalties andsmelting, refining and transport costs) and corporate administration andexploration expenditure.Earnings per share for the six month period ended 30 June 2011 of 29.3 centsincreased 21% from the prior year period of 24.2 cents as a result of higherearnings.Cashflow review Three months ended Six months ended ($ '000) 30 June 30 June 2011 2010 2011 2010 Cash flow from operating activities 99,450

90,341 186,134 157,665

Cash used in investing activities (63,800)

(123,175) (116,108) (161,629)

Cash (used in)/ provided by financing activities (13,770) 47,197 (15,205) 268,869 Increase in cash 21,880 14,363 54,821 264,905

Foreign exchange difference on cash (620)

(66) (756) (202) Opening cash balance 433,817 320,132 401,012 69,726 Closing cash balance 455,077 334,429 455,077 334,429

Cash flow from operating activities for the six month period ended 30 June 2011of $186.1 million increased by $28.5 million from the prior year period of$157.7 million. The increase primarily relates to increased EBITDA which waspartially offset by working capital movements. Higher investment in workingcapital was associated with the increase in inventory of critical supplies andspares, which resulted in an investment of $49.7 million for the six monthsended 30 June 2011, which was slightly offset by an inflow associated with thereduction of finished goods inventory on hand.

Cash flow used in investing activities for the six month period ended 30 June 2010 of $116.1 million decreased 28% from the prior year period of $161.6 million. The decrease can primarily be attributed to the $63 million acquisition in cash of Tusker Gold Ltd in this first half of 2010.

Cash used in financing activities for the reporting period was $15.2 millioncompared to cash provided by financing activities of $268.9 million in theprior year period. The difference primarily relates to the net cash raisedthrough the initial public offering of ABG on the London Stock Exchange and thepartial excercise of the overallotment option of shares in the first half of2010. The outflow during the reporting period related to the payment of thefinal dividend for the 2010 financial year, which was approved by ABG'sshareholders at the annual general meeting held on 21 April 2011.

At 30 June 2011 ABG had cash and cash equivalents of $455 million.

In the fourth quarter of 2010 ABG entered into a credit agreement for theprovision of a revolving credit facility of $150 million with a syndicate ofbanks. As at 30 June 2011 the facility remains undrawn. At 30 June 2011, ABGdoes not have any debt.ABG continues to offer investors gold production and reserves ounces that are100% unhedged and full exposure to changes in the gold price. Since the fourthquarter of 2010, the Company has entered into a series of copper and silverzero cost collars as part of a strategy of managing cash costs and co-productrevenue. ABG has managed its balance sheet conservatively and, together with strong cashflow generation at current gold prices, has appropriate financial flexibilityto invest in the sustainability of the current operations, fund organic growthprojects, take advantage of external growth opportunities that may arise and topay dividends to its shareholders.

Going Concern

The Group's business activities, together with factors likely to affect itsfuture development, performance, and position are set out in the Overview andPerformance sections of the annual report for the year ended 31 December 2010.The financial position of the ABG Group, its cash flows, liquidity position andborrowing facilities are described in the preceding paragraphs of thisfinancial update.In assessing the ABG Group's going concern status the Directors have taken intoaccount the above factors, including the financial position of the ABG Groupand in particular its significant cash position, the current gold and copperprice and market expectations for the same in the medium term, and the ABGGroup's capital expenditure and financing plans.After making appropriate enquiries, the Directors consider that ABG and the ABGGroup as a whole has adequate resources to continue in operational existencefor the foreseeable future and that it is appropriate to adopt the goingconcern basis in preparing the financial statements.

Non-IFRS measures

ABG has identified certain measures in this report that are not measuresdefined under IFRS. Non-IFRS financial measures disclosed by management areprovided as additional information to investors in order to provide them withan alternative method for assessing ABG's financial condition and operatingresults. These measures are not in accordance with, or a substitute for, IFRSmeasures, and may be different from or inconsistent with non-IFRS financialmeasures used by other companies. These measures are explained further below.

Average realised gold price per ounce sold is a non-IFRS financial measure which excludes from gold revenue:

- Unrealised gains and losses on non-hedge derivative contracts

- Unrealised marked-to-market gains and losses on provisional pricing from copper and gold sales contracts; and

- Export duties.

Cash costs per ounce sold is a non-IFRS financial measure. Cash costs includeall costs absorbed into inventory, as well as royalties, co-product revenue,and production taxes, and exclude capitalised production stripping costs,inventory purchase accounting adjustments, unrealised gains/losses fromnon-hedge currency and commodity contracts, depreciation and amortisation andsocial development costs. Cash cost is calculated net of co-product revenue.The change in the cash cost measurement to include co-product revenue followsthe decision by management to present the sale of copper and silver asco-product revenue and part of total revenue.The presentation of these statistics in this manner allows ABG to monitor andmanage those factors that impact production costs on a monthly basis. ABGcalculates cash costs based on its equity interest in production from itsmines. Cash costs per ounce sold are calculated by dividing the aggregate ofthese costs by gold ounces sold. Cash costs and cash costs per ounce sold arecalculated on a consistent basis for the periods presented. Refer to page 23for a reconciliation of cost of sales to cash costs.

EBITDA is a non-IFRS financial measure. ABG calculates EBITDA as net profit or loss for the period excluding:

- Income tax expense;- Finance expense;- Finance income;

- Depreciation and amortisation; and

- Goodwill impairment charges.

EBITDA is intended to provide additional information to investors and analysts.It does not have any standardised meaning prescribed by IFRS and should not beconsidered in isolation or as a substitute for measures of performance preparedin accordance with IFRS. EBITDA excludes the impact of costs of financingactivities and taxes, and the effects of changes in operating working capitalbalances, and therefore is not necessarily indicative of operating profit orcash flow from operations as determined under IFRS. Other companies maycalculate EBITDA differently. Refer to page 24 for a reconciliation of netprofit to EBITDA.

EBIT is a non-IFRS financial measure and reflects EBITDA adjusted for depreciation and amortisation and goodwill impairment charges.

Amortisation and other cost per ounce sold is a non-IFRS financial measure.Amortisation and other costs include amortisation and depreciation expenses andthe inventory purchase accounting adjustments at ABG's producing mines. ABGcalculates amortisation and other costs based on its equity interest inproduction from its mines. Amortisation and other costs per ounce sold iscalculated by dividing the aggregate of these costs by ounces of gold sold.Amortisation and other cost per ounce sold are calculated on a consistent basisfor the periods presented.Cash cost per tonne milled is a non-IFRS financial measure. Cash costs includeall costs absorbed into inventory, as well as royalties, co-product revenue,and production taxes, and exclude capitalised production stripping costs,inventory purchase accounting adjustments, unrealised gains/losses fromnon-hedge currency and commodity contracts, depreciation and amortisation andsocial development costs. Cash cost is calculated net of co-product revenue.ABG calculates cash costs based on its equity interest in production from itsmines. Cash costs per tonne milled are calculated by dividing the aggregate ofthese costs by total tonnes milled.

Cash margin is a non- IFRS measure. It measures the excess of the average realised gold price per ounce over the cash cost per ounce sold incurred.

Average realised copper price is a non- IFRS measure. It measures the average price obtained for the sale of one pound of copper on the market.

Mining statistical information

The following describes certain line items used in the ABG Group's discussion of key performance indicators:

Open pit material mined - measures in tonnes the total amount of open pit ore and waste mined.

Underground ore tonnes hoisted - measures in tonnes the total amount of underground ore mined and hoisted.

Total tonnes mined include open pit material plus underground ore tonnes hoisted.

Strip ratio - measures the ratio wasteâ€"toâ€"ore for open pit material mined.

Ore milled - measures in tonnes the amount of ore material processed through the mill.

Head grade - measures the metal content of mined ore going into a mill for processing.

Milled recovery - measures the proportion of valuable metal physically recovered in the processing of ore. It is generally stated as a percentage of the metal recovered compared to the total metal originally present.

Total production costs - measures the total cost of production and is an aggregate of total cash costs as well as production specific depreciation and amortisation.

Direct cash operating cost per ounce - measures the total direct cash cost attributable to producing an ounce. It reflects cash costs adjusted to exclude royalties and third party smelting and refining fees on an ounce basis.

Principal risks and uncertainties

There are a number of potential risks and uncertainties which could have amaterial impact on the Group's performance over the remaining six months of thefinancial year and could cause actual results to differ materially fromexpected and historical results. The directors do not consider that theprincipal risks and uncertainties have changed since the publication of theannual report for the year ended 31 December 2010. As such these risks continueto apply to the Group for the remaining six months of the financial year.

The principal risks and uncertainties disclosed in the 2010 annual report were categorised as:

Single country risk

Reserves and resources estimates

Commodity prices

Cost and capital expenditure

Political, legal and regulatory developments

Taxation reviewsUtilities supplyCommunity relationsLoss of critical processes

Environmental hazards and rehabilitation

Employees and contractors

Security, trespass and vandalism

Health and safety, infectious diseases

A detailed explanation of these risks and uncertainties can be found on pages 66 to 69 of the annual report which is available at www.africanbarrickgold.com.

Statement of directors' responsibility

The directors confirm that, to the best of their knowledge, the condensed consolidated interim financial information has been prepared in accordance with IAS 34 as adopted by the European Union. The half-year management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R and Disclosure and Transparency Rule 4.2.8R, namely:

an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated interim financial information, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

material related-party transactions in the first six months of the financial year and any material changes in the related party transactions described in the last Annual Report.

The directors of African Barrick Gold plc are listed in the African Barrick Gold plc Annual Report for 31 December 2010. A list of current directors is maintained on the African Barrick Gold plc Group website: www.africanbarrickgold.com.

By order of the BoardGreg HawkinsChief Executive OfficerKevin JenningsChief Financial Officer26 July 2011Auditors' review report Independent review report to African Barrick Gold plc

Introduction

We have been engaged by the company to review the condensed consolidatedinterim financial information in the half-yearly financial report for the sixmonths ended 30 June 2011, which comprises the Consolidated Income Statement,the Consolidated Statement of Comprehensive Income, the Consolidated BalanceSheet, the Consolidated Statement of Changes in Equity, the ConsolidatedStatement of Cash Flows and related notes. We have read the other informationcontained in the half-yearly financial report and considered whether itcontains any apparent misstatements or material inconsistencies with theinformation in the condensed consolidated interim financial information.

Directors' responsibilities

The half-year financial report is the responsibility of, and has been approvedby, the directors. The directors are responsible for preparing the half-yearlyfinancial report in accordance with the Disclosure and Transparency Rules ofthe United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed consolidated interim financial information included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensedconsolidated interim financial information in the half-yearly financial reportbased on our review. This report, including the conclusion, has been preparedfor and only for the company for the purpose of the Disclosure and TransparencyRules of the Financial Services Authority and for no other purpose. We do not,in producing this report, accept or assume responsibility for any other purposeor to any other person to whom this report is shown or into whose hands it maycome save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, 'Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity' issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly,we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us tobelieve that the condensed consolidated interim financial information in thehalf-yearly financial report for the six months ended 30 June 2011 is notprepared, in all material respects, in accordance with International AccountingStandard 34 as adopted by the European Union and the Disclosure andTransparency Rules of the United Kingdom's Financial Services Authority.PricewaterhouseCoopers LLPChartered AccountantsLondon26 July 2011Notes:The maintenance and integrity of the African Barrick Gold website is theresponsibility of the directors; the work carried out by the auditors does notinvolve consideration of these matters and, accordingly, the auditors accept noresponsibility for any changes that may have occurred to the financialstatements since they were initially presented on the website

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

FINANCIAL INFORMATION

Consolidated Income Statement

For the year For the six months ended ended 31 30 June December (Unaudited) (Unaudited) (Audited)

(in thousands of United States dollars) 2011 2010

2010 Revenue 578,387 445,889 975,021 Cost of sales (344,639) (270,068) (589,039) Gross profit 233,748 175,821 385,982 Corporate administration (20,525) (16,757) (35,436) Exploration and evaluation costs (16,078) (2,590) (14,861) Other charges (note 5) (15,572) (13,224) (26,033) Profit before net finance expense and taxation 181,573 143,250 309,652 Finance income 809 710 1,202 Finance expense (4,121) (723) (1,777) (3,312) (13) (575) Profit before taxation 178,261 143,237 309,077 Tax expense (note 6) (54,031) (43,035) (86,471) Net profit for the period 124,230 100,202 222,606 Profit attributable to: - Non-controlling interests 4,096 971 4,503 - Owners of the parent (net earnings) 120,134 99,231 218,103 Earnings per share:

- Basic earnings per share (cents) (note 7) 29.3 24.2

53.2

- Diluted earnings per share (cents) (note 7) 29.3 24.2

53.2

Consolidated Statement of Comprehensive Income

For the six months ended For the year ended 30 June 31 December (Unaudited) (Unaudited) (Audited)

(in thousands of United States dollars) 2011 2010 2010 Net profit for the period 124,230 100,202 222,606 Other comprehensive income for the period - - - Total comprehensive income for the period 124,230 100,202 222,606 Attributed to: - Non-controlling interests 4,096 971 4,503 - Owners of the parent 120,134 99,231 218,103

The notes on pages 34 to 44 are an integral part of these half-year consolidated financial statements.

Consolidated Balance Sheet As at As at 31 30 June December (Unaudited) (Unaudited) (Audited)

(in thousands of United States dollars) 2011 2010 2010 ASSETS Non-current assets Goodwill and intangible assets 258,513 257,538 258,513 Property, plant and equipment (note 8) 1,673,481 1,535,693 1,615,118 Deferred tax assets 89,908 151,030 121,269 Non-current portion of inventory 69,122 - 69,122 Other assets (note 9) 106,969 97,333 104,458 2,197,993 2,041,594 2,168,480 Current assets Inventories 274,966 296,087 227,974 Trade and other receivables (note 9) 59,242 32,528 59,214 Other current assets (note 9) 62,697 60,972 70,428 Cash and cash equivalents 455,077 334,429 401,012 851,982 724,016 758,628

Total assets 3,049,975

2,765,610 2,927,108

EQUITY AND LIABILITIES

Share capital and share premium 929,199 929,199 929,199 Other reserves 1,689,745 1,471,691 1,584,125 Total owners' equity 2,618,944 2,400,890 2,513,324 Non-controlling interests 32,627 22,834 29,761 Total Equity 2,651,571 2,423,724 2,543,085

Non-current liabilities

Deferred tax liabilities 158,606 122,078 136,185 Derivative financial instruments (note 10) 476 - 1,754 Provisions 112,592 85,026 108,944 Other non-current liabilities 3,871 11,099 7,483 275,545 218,203 254,366

Current liabilities

Trade and other payables 115,730 123,683 119,961 Derivative financial instruments (note 10) 989 - 1,904 Provisions 4,000 - 4,000 Other current liabilities 2,140 - 3,792 122,859 123,683 129,657

Total liabilities 398,404

341,886 384,023

Total equity and liabilities 3,049,975 2,765,610 2,927,108

The notes on pages 34 to 44 are an integral part of these half-year consolidated financial statements.

Consolidated Statement of Changes in Equity

Contributed surplus/ Stock Share Share Other option capital premium reserve reserve

(in thousands of United States dollars) Balance at 31 December 2009 (Audited) -

- 633,752 - Profit for the period - - - - Issuance of shares to BGC 1,991 1,989,138 (1,991,129) - Capital reduction - (1,989,138) 1,989,138 - Bonus issue to BGC 43,805 - (43,805) - Special dividends - - (258,680) -

Conversion to contributed surplus -

- 1,039,808 - Share issuance 16,301 921,035 - - Transaction costs - (53,933) - -

Distributions to be received from non-controlling interests -

- - - Stock option grants - - - 206 Balance at 30 June 2010 (Unaudited) 62,097 867,102 1,369,084 206 Profit for the period - - - -

Conversion to contributed surplus -

- (310) - Interim dividend - - - -

Distributions from non-controlling interests -

- - - Stock option grants - - - 434 Balance at 31 December 2010 (Audited) 62,097 867,102 1,368,774 640 Profit for the period - - - -

Conversion to contributed surplus -

- (62) - Final dividend - - - -

Distributions to non-controlling interests -

- - - Stock option grants - - - 753 Balance at 30 June 2011 (Unaudited) 62,097

867,102 1,368,712 1,393

The notes on pages 34 to 44 are an integral part of these half year consolidated financial statements.

Consolidated Statement of Changes in Equity

Total Total non- Retained owners' controlling earnings equity interests Total equity

(in thousands of United States dollars) Balance at 31 December 2009 (Audited) 3,170 636,922 20,493 657,415 Profit for the period 99,231 99,231 971 100,202 Issuance of shares to BGC - - - - Capital reduction - - - - Bonus issue to BGC - - - - Special dividends - (258,680) - (258,680) Conversion to contributed surplus - 1,039,808 - 1,039,808 Share issuance - 937,336 - 937,336 Transaction costs - (53,933) - (53,933)

Distributions to be received from non-controlling interests -

- 1,370 1,370 Stock option grants - 206 - 206 Balance at 30 June 2010 (Unaudited) 102,401 2,400,890 22,834 2,423,724 Profit for the period 118,872 118,872 2,162 121,034 Conversion to contributed surplus - (310) - (310) Interim dividend (6,562) (6,562) - (6,562)

Distributions from non-controlling interests -

- 4,765 4,765 Stock option grants - 434 - 434 Balance at 31 December 2010 (Audited) 214,711 2,513,324 29,761 2,543,085 Profit for the period 120,134 120,134 4,096 124,230 Conversion to contributed surplus - (62) - (62) Final dividend (15,205) (15,205) - (15,205)

Distributions to non-controlling interests -

- (1,230) (1,230) Stock option grants - 753 - 753 Balance at 30 June 2011 (Unaudited) 319,640

2,618,944 32,627 2,651,571

The notes on pages 34 to 44 are an integral part of these half year consolidated financial statements.

Consolidated Statement of Cash Flows

For the year ended For the six months ended 31 30 June December

(Unaudited) (Unaudited) (Audited)

(in thousands of United States dollars)

2011 2010 2010

Cash flows from operating activities Net profit for the period 124,230 100,202 222,606 Adjustments for: Taxation 54,031 43,035 86,471 Depreciation and amortisation 60,099 49,404 107,072 Finance items 3,312 13 575

Loss on disposal of property, plant and equipment - (3) 90 Working capital adjustments

(64,730) (19,846) (84,248) Other non-cash items 10,961 (15,855) 11,785

Cash generated from operations before interest and tax

187,903 156,950 344,351

Finance income 809 710 1,202 Finance expenses (2,578) (4) (412) Income tax paid - 9 -

Net cash generated by operating activities

186,134 157,665 345,141

Cash flows from investing activities Purchase of property, plant and equipment

(118,666) (86,495) (224,391)

Investments in other assets

(643) (2,332) (2,592)

Acquisition of subsidiary, net of cash acquired

- (63,109) (63,109)

Other investing activities

3,201 (9,693) 14,537

Net cash used in investing activities

(116,108) (161,629) (275,555)

Cash flows from financing activities Repayment of related party debt funding

- (575,100) (575,100)

Share issuance - IPO (net of transaction costs)

- 865,366 865,366

Increase in contributed surplus

- 231,584 231,255

Dividend paid

(15,205) (252,981) (259,543)

Net cash provided by financing activities

(15,205) 268,869 261,978

Net increase in cash and equivalents

54,821 264,905 331,564

Net foreign exchange difference

(756) (202) (278)

Cash and cash equivalents at 1 January

401,012 69,726 69,726

Cash and cash equivalents at 31 December

455,077 334,429 401,012

The notes on pages 34 to 44 are an integral part of these half-year consolidated financial statements.

Notes to the Consolidated Interim Financial Statements

1 GENERAL INFORMATION

African Barrick Gold plc (the "Company") was incorporated on 12 January 2010 and re-registered as a public limited company on 12 March 2010 under the Companies Act 2006. It is registered in England and Wales with registered number 7123187.

On 24 March 2010 the Company's shares were admitted to the Official List of theUnited Kingdom Listing Authority ("UKLA") and to trading on the main market ofthe London Stock Exchange, hereafter referred to as the Initial Public Offering("IPO"). The address of its registered office is 6 St James's Place, LondonSW1A 1NP, United Kingdom.

Barrick Gold Corporation (''BGC'') currently owns 73.9% percent of the shares of the Company and is the ultimate controlling party of the Group.

In preparation for the IPO, BGC conducted a reorganisation, which was completedon the 22nd of February 2010, whereby the companies comprising the AfricanRegional Business Unit of BGC were reorganised under the Company (The pre-IPOreorganisation). As such, prior to 22 February 2010, the Company did notcontrol the entities (collectively the "Group") it acquired pursuant to thepre-IPO reorganisation.This condensed consolidated interim financial information for the six monthsended 30 June 2011 was approved for issue by the Board of Directors of theCompany on 25 July 2011. The condensed consolidated interim financialinformation does not comprise statutory accounts within the meaning of section434 of the Companies Act 2006. The condensed consolidated interim financialinformation has been reviewed, not audited.

The Group's primary business is the mining, processing and sale of gold. The Group has four operating mines located in Tanzania. The Group also has a portfolio of exploration projects located across Tanzania.

2 BASIS OF PREPARATION OF HALF-YEAR REPORT

The Company became the holding company for the Group pursuant to the pre-IPOReorganisation completed on 22 February 2010, as detailed in Note 1. As thiswas a reorganisation of businesses under common control, the condensedconsolidated interim financial information for the six months ended 30 June2010 has been prepared on a basis that combines the results and assets andliabilities of each of the companies constituting the group (the pooling ofinterest method of accounting).

For the periods prior to the pre-IPO Reorganisation, consolidated financial statements were not prepared for the Group. The accompanying condensed consolidated interim financial information presents the results of the company and its subsidiaries as if the group was in existence throughout the period presented and as if the pre-IPO Reorganisation had been occurred as at 01 January 2010.

The condensed consolidated interim financial information for the six monthsended 30 June 2011 has been prepared in accordance with the Disclosure andTransparency Rules of the Financial Services Authority and with IAS 34,'Interim Financial Reporting' as adopted by the European Union. The condensedconsolidated interim financial information should be read in conjunction withthe annual financial statements for the year ended 31 December 2010, which havebeen prepared in accordance with IFRS as adopted by the European Union.Statutory accounts for the year ended 31 December 2010 were approved by theBoard of Directors on 10 March 2011 and delivered to the Registrar ofCompanies. The report of the auditors on those accounts was unqualified, didnot contain an emphasis of matter paragraph and did not contain any statementunder section 498 of the Companies Act 2006.

The condensed consolidated interim financial information has been prepared under the historical cost basis, as modified by the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss. The financial statements are presented in US dollars ($) and all monetary results are rounded to the nearest thousand ($'000) except when otherwise indicated.

The impact of the seasonality on operations is not considered as significant on the condensed consolidated interim financial information.

After making enquiries, the Directors have a reasonable expectation that theGroup has adequate resources to continue in operational existence for theforeseeable future. The Group therefore continues to adopt the going concernbasis in preparing the consolidated interim financial information.3. ACCOUNTING POLICIES

The accounting policies adopted are consistent with those used in the African Barrick Gold plc annual financial statements for the year ended 31 December 2010 except as described below.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to the expected total annual earnings.

a) New and amended standards adopted by the Group

There were no new standards, interpretations or amendments to standards issued and effective for the period which materially impacted on the Group.

b) Comparitives

Comparative figures for the six months ended 30 June 2010 have been restatedfor the following change in presentational format between the Prospectus andthe consolidated financial statements:Revenue from the sale of copper and silver is treated as co-product revenue,and included in total revenue. This is different from the half year report forthe six months ended 30 June 2010, where it was treated as by-product revenueand a credit to cost of sales. This is consistent with the classificationadopted in the annual financial statements for the year ended 31 December 2010(please refer to note 2a) on page 107 of the Annual Report & Accounts 2010).

4. Segment Reporting

The Group has only one primary product produced in a single geographiclocation, being gold produced in Tanzania. Reportable operating segments arebased on the internal reports provided to the Chief Operating Decision Maker("CODM") to evaluate segment performance, decide how to allocate resources andmake other operating decisions. After applying the aggregation criteria andquantitative thresholds contained in IFRS 8, the Group's reportable operatingsegments were determined to be: North Mara gold mine; Tulawaka gold mine;Bulyanhulu gold mine; Buzwagi gold mine; and a separate Corporate andExploration segment, which primarily consist of costs related to corporateadministration and exploration and evaluation activities ("Other").Segment results and assets include items directly attributable to the segmentas well as those that can be allocated on a reasonable basis. Capitalexpenditures comprise additions to property, plant and equipment. Segmentliabilities are not reported since they are not considered by the CODM. Unallocated items comprise mainly of finance income, finance expense, taxationand financial assets.Segment information for the reportable operating segments of the Group for thesix months ended 30 June 2010 and 30 June 2011, and year ended 31 December

2010is set out below. For the six months ended 30 June 2011 (Unaudited)

(in thousands of United States

dollars) North Mara Tulawaka Bulyanhulu Buzwagi Other Total Gold revenue 125,209 59,670 206,695 147,930 - 539,504 Co-product revenue 470 147 20,895 17,371 - 38,883 Total segment revenue¹ 125,679 59,817 227,590 165,301 - 578,387 Segment cash operating cost² 70,193 28,190 102,869 80,033 36,603 317,888 Other charges 5,752 3,424 4,520 5,465 (3,589) 15,572 EBITDA³ 49,734 28,203 120,201 79,803 (33,014) 244,927 Depreciation and amortisation 16,944 6,533 16,172 21,833 1,872 63,354 EBIT 32,790 21,670 104,029 57,970 (34,886) 181,573

Total segment finance income

809

Total segment finance expense

(4,121) Profit before tax 178,261 Income tax expense (54,031) Profit for the period 124,230 Capital expenditure: Sustaining 24,593 4,055 12,657 14,548 1,575 57,428 Expansionary 26,957 5,211 21,494 5,981 - 59,643

Rehabilitation asset adjustment 593 13 618 371

- 1,595 Total capital expenditure 52,143 9,279 34,769 20,900 1,575 118,666 Cash costs:

Segmental cash operating cost² 70,193 28,190 102,869 80,033

281,285 Deduct: Co-product revenue (470) (147) (20,895) (17,371) (38,883) Total cash costs 69,723 28,043 81,974 62,662 242,402 Sold ounces⁴ 85,650 40,850 141,805 101,033 369,337 Cash cost per ounce sold 814 686 578 620 656 Equity ounce adjustment⁵ (1) Attributable cash cost per ounce sold 655 4. Segment Reporting (continued) For the six months ended 30 June 2010 (Unaudited) (in thousands of United States dollars) North Mara Tulawaka Bulyanhulu Buzwagi Other Total Gold revenue 124,729 33,009 141,237 124,860 - 423,835 Co-product revenue 382 61 12,856 8,755 - 22,054 Total segment revenue¹ 125,111 33,070 154,093 133,615 - 445,889 Segment cash operating cost² 52,107 18,679 78,782 67,496 19,347 236,411 Other charges 6,868 989 3,899 1,961 (493) 13,224 EBITDA³ 66,136 13,402 71,412 64,158 (18,854) 196,254 Depreciation and amortisation 14,024 6,649 13,798 16,998 1,535 53,004 EBIT 52,112 6,753 57,614 47,160 (20,389) 143,250

Total segment finance income 710 Total segment finance expense

(723) Profit before tax 143,237 Income tax expense (43,035) Profit for the period 100,202 Capital expenditure: Sustaining 6,154 - 32,742 7,231 245 46,372 Expansionary 30,528 5,450 47 783 3,315 40,123

Rehabilitation asset adjustment - - -

- - - Total capital expenditure 36,682 5,450 32,789 8,014 3,560 86,495 Cash costs: Segmental cash operating cost² 52,107 18,679 78,782 67,496 217,064 Deduct: Co-product revenue (382) (61) (12,856) (8,755) (22,054) Total cash costs 51,725 18,618 65,926 58,741 195,010 Sold ounces⁴ 108,056 29,049 121,985 107,723 366,813 Cash cost per ounce sold 479 641 540 545 532 Equity ounce adjustment⁵ (3)

Attributable cash cost per ounce sold 529 4. Segment Reporting (continued) For the year ended 31 December 2010 (Audited)

(in thousands of United States

dollars) North Mara Tulawaka Bulyanhulu Buzwagi Other Total Gold revenue 268,762 78,499 327,847 246,194 - 921,302 Co-product revenue 804 148 31,977 20,790 - 53,719 Total segment revenue¹ 269,566 78,647 359,824 266,984 - 975,021 Segment cash operating cost² 103,983 45,450 173,491 156,600 50,297 529,821 Other charges 12,743 (5,865) 5,100 14,408 (353) 26,033 EBITDA³ 152,840 39,062 181,233 95,976 (49,944) 419,167 Depreciation and amortisation 28,018 10,622 28,386 39,087 3,402 109,515 EBIT 124,822 28,440 152,847 56,889 (53,346) 309,652

Total segment finance income

1,202

Total segment finance expense

(1,777) Profit before tax 309,077 Income tax expense (86,471) Profit for the period 222,606 Capital expenditure: Sustaining 26,217 9,748 71,387 18,844 7,116 133,312 Expansionary 59,043 2,758 357 973 - 63,131

Rehabilitation asset adjustment 6,182 3,007 8,795 9,964

- 27,948 Total capital expenditure 91,442 15,513 80,539 29,781 7,116 224,391 Cash costs:

Segmental cash operating cost² 103,983 45,450 173,491 156,600

479,524 Deduct: Co-product revenue (804) (148) (31,977) (20,790) (53,719) Total cash costs 103,179 45,302 141,514 135,810 425,805 Sold ounces⁴ 218,684 63,909 262,442 198,221 743,256 Cash cost per ounce sold 472 709 539 685 573 Equity ounce adjustment⁵ (4) Attributable cash cost per ounce sold 569 1Revenue includes the incidental revenue derived from the sale of co-products.Previously co-product revenue was regarded as by-products and included in costof sales. Figures for the six months ended 30 June 2010 have been restated.

2 The Chief Operating Decision Maker reviews cash operating costs for the four operating mine sites separately from corporate administration costs and exploration costs. Consequently, the Group has reported these costs in this manner.

3 These are non-IFRS financial performance measures with no standard meaning under IFRS. Refer to 'Non IFRS measures' on page 26 for definitions.

4 Reflects 100% of ounces sold.

5 Reflects the adjustment for non-controlling interest at Tulawaka.

As at As at 30 June 31 December (Unaudited) (Unaudited) (Audited)

(in thousands of United States dollars) 2011 2010

2010 Segment assets North Mara 643,851 600,706 603,739 Tulawaka 111,589 87,368 104,003 Bulyanhulu 1,112,766 1,067,062 1,109,740 Buzwagi 774,388 602,266 724,467 Other 407,381 408,208 385,159 Total segment assets 3,049,975 2,765,610 2,927,108 5. Other charges

Profit for the half-year includes the following other charges, which are unusual because of their nature, size or incidence:

For the six months ended For the year ended 30 June 31 December (Unaudited) (Unaudited) (Audited)

(in thousands of United States

dollars) 2011 2010 2010 Other Expense

Corporate social responsibility

investment costs 1,372 726 3,467 Discounting of indirect tax receivable - - 6,808 Foreign exchange losses 12,509 8,772 7,863

Unrealised non-hedge derivative

(gains) and losses (2,193) - 3,658 Severance costs 874 - -

Transaction cost associated with

listing - 2,575 2,575 Insurance - - 1,840 Buzwagi fuel claim¹ - - 2,539 Other 3,010 1,151 3,667 Total 15,572 13,224 32,417 Other Income Insurance proceeds - - (4,535) Other² - - (1,849) Total - - (6,384) Total other charges 15,572 13,224 26,033

1 Fuel duty receivable previously recognised has been derecognised following the Buzwagi fuel theft incident.

2 Other income represents the gain recognised following the waiving of payables balances owed to related parties.

TAX ON PROFIT ON ORDINARY ACTIVITIES

a) Analysis of charge for the period

For the six months ended For the year ended 30 June 31 December (Unaudited) (Unaudited) (Audited) (in thousands of United States dollars) 2011 2010 2010 Current tax: Current tax - 569 291on UK profits for the year at 28% Current tax 249 155 -on foreign profits for the year¹ Total current tax 724 291 expense 249 Deferred tax : Origination 53,782 42,311 86,180and reversal of temporary differences Total 53,782 42,311 86,180deferred tax expense Income tax 54,031 43,035 86,471expense

1 The current income tax charge is in respect of taxable profits arising in the UK and Barbados.

6. TAX ON PROFIT ON ORDINARY ACTIVITIES (continued)

Tax periods remain open to review by the Tanzania Revenue Authority ("TRA") inrespect of income taxes for 5 years following the date of the filling of thecorporate tax return, during which time the authorities have the right to raiseadditional tax assessment including penalties and interest. Under certaincircumstances the reviews may cover longer periods. Because a number of taxperiods remain open to review by tax authorities, there is a risk thattransactions that have not been challenged in the past by the authorities maybe challenged by them in the future, and this may result in the raising ofadditional tax assessments plus penalties and interest. The Group haspreviously accounted for an adjustment to unrecognised tax benefits in respectof tax losses to reflect uncertainty regarding recoverability of certain taxlosses. The Group makes no further provision in respect of such taxassessments.

b) Factors affecting tax charge for the period

The effective forecast tax rate for the period of 30% (six months ended 30 June2010: 30%; year ended 31 December 2010:28%) is in line with the applicablestandard tax rate of corporation tax in Tanzania (30%). The reconciling itemsare: For the six months ended For the year ended 30 June 31 December (Unaudited) (Unaudited) (Audited)

(in thousands of United States dollars) 2011 2010

2010

Tax on profit on ordinary activities 53,478 43,744

88,186

calculated at the Tanzanian tax rate of 30%

Tax effects of:

Items not taxable/ deductible for tax

purposes

Adjustment to unrecognised tax benefits - -

4,347 Prior year adjustments - - (2,201)

Other non-deductible expenses - 773

(2,908)

Effect of tax rates in foreign jurisdictions (3,604) (1,820)

(63)

Tax losses for which no deferred income tax 4,157 338

-asset is recognised Other - - (890) Income tax expense 54,031 43,035 86,471 7. Earnings per share

Earnings per share ("EPS") is calculated by dividing profit for the period attributable to equity shareholders of the Company by the weighted average number of ordinary shares in issue during the period.

The Company has potential dilutive ordinary shares in the form of stock options.

At 30 June 2011, 30 June 2010 and 31 December 2010, earnings per share havebeen calculated as follows: For the six months For the ended year ended 30 June 31 December (Unaudited) (Unaudited) (Audited) (in thousands of United States dollars) 2011 2010 2010 Earnings

Profit from continuing operations attributable to

owners of the parent 120,134 99,231 218,103

Weighted average number of Ordinary Shares in issue 410,085,499 410,085,499 410,085,499

Adjusted for dilutive effect of:

- Stock options 13,384 6,116 18,482

Weighted average number of Ordinary Shares for diluted

earnings per share 410,093,307 410,091,615 410,103,981 Earnings per share (cents) Basic earnings per share from continuing operations 29.3

24.2 53.2

Dilutive earnings per share from continuing operations 29.3 24.2 53.2

8. property, plant and equipment (Unaudited) (in thousands of United Plant and Mineral properties and Assets under States dollars) equipment mine development costs construction¹ Total

For the six months ended 30

June 2011 At 1 January 2011, net of accumulated depreciation 796,999 693,834 124,285 1,615,118 Additions - - 118,666 118,666 Disposals/write-downs (204) - - (204) Depreciation (22,632) (37,467) - (60,099) Transfers between categories 25,507 48,860 (74,367) - At 30 June 2011 799,670 705,227 168,584 1,673,481 At 1 January 2011 Cost 1,125,072 1,005,279 124,285 2,254,636 Accumulated depreciation (328,073) (311,445) - (639,518) Net carrying amount 796,999 693,834 124,285 1,615,118 At 30 June 2011 Cost 1,148,965 1,054,139 168,584 2,371,688 Accumulated depreciation (349,295) (348,912) - (698,207) Net carrying amount 799,670 705,227 168,584 1,673,481

For the six months ended 30

June 2010 At 1 January 2010, net of accumulated depreciation 784,122 625,030 88,920 1,498,072 Additions - - 86,495 86,495 Depreciation (19,583) (29,291) - (48,874) Transfers between categories (751) 47,673 (46,922) - At 30 June 2010 763,788 643,412 128,493 1,535,693 At 1 January 2010 Cost 1,067,766 875,242 88,920 2,031,928 Accumulated depreciation (283,644) (250,212) - (533,856) Net carrying amount 784,122 625,030 88,920 1,498,072 At 30 June 2010 Cost 1,067,015 922,915 128,493 2,118,423 Accumulated depreciation (303,227) (279,503) - (582,730) Net carrying amount 763,788 643,412 128,493 1,535,693 8. property, plant and equipment (continued)(Audited) (in thousands of United Plant and Mineral properties and Assets under States dollars) equipment mine development costs construction¹ Total For the year ended 31 December 2010 At 1 January 2010, net of accumulated depreciation 784,122 625,030 88,920 1,498,072 Additions - - 224,391 224,391 Disposals/write-downs (273) - - (273) Depreciation (45,839) (61,233) - (107,072) Transfers between categories 58,989 130,037 (189,026) - At 31 December 2010 796,999 693,834 124,285 1,615,118 At 1 January 2010 Cost 1,067,766 875,242 88,920 2,031,928 Accumulated depreciation (283,644) (250,212) - (533,856) Net carrying amount 784,122 625,030 88,920 1,498,072 At 31 December 2010 Cost 1,125,072 1,005,279 124,285 2,254,636 Accumulated depreciation (328,073) (311,445) - (639,518) Net carrying amount 796,999 693,834 124,285 1,615,118 ¹ Assets under construction represents (a) sustaining capital expendituresincurred constructing tangible fixed assets related to operating mines andadvance deposits made towards the purchase of property, plant and equipment;and (b) expansionary expenditure allocated to a project on a businesscombination or asset acquisition, and the subsequent costs incurred to developthe mine. Once these assets are ready for their intended use, the balance istransferred to plant and equipment, and/or mineral properties and minedevelopment costs.9. Trade AND OTHER receivables AND OTHER ASSETS For the year For the six months ended ended 31 30 June December (Unaudited) (Unaudited) (Audited)

(in thousands of United States dollars) 2011

2010 2010

Trade and other current assets

Trade receivables: Amounts due from dor©and concentrate sales 54,097 15,957 46,491 Other receivables¹ 4,958 9,564 11,621 Due from related parties 541 8,370 2,131 Less: Provision for doubtful debt on other receivables (354) (1,363) (1,029) 59,242 32,528 59,214 Other current assets: Current portion of indirect tax receivables² 57,591

54,992 58,048

Other debtors and advance payments 5,106 5,150 12,055 Insurance receivable - 830 325 62,697 60,972 70,428 Other non-current assets Amounts due from government³ 26,033

22,991 24,844

Operating lease prepayments - TANESCO powerlines 4,205

4,205 4,210

Prepayments - Acquisition of rights over leasehold land 6,903 7,709 7,444

Non-current portion of indirect tax receivable² 66,137 61,367 63,174 Village housing⁴ 465 539 465 Other 3,226 522 4,321 106,969 97,333 104,458 Total receivables and other assets 228,908

190,833 234,100

1Other receivables relates to employee and supplier backcharge-related receivables.

2This receivable is due from the Tanzanian Revenue Authority and it is anticipated to be offset against future corporation tax payments. To reflect the time value of money, the long-term portion of this receivable has been discounted at a rate of 5.7%.

3Included in this amount are amounts receivable from the Tanzanian SocialSecurity Fund of $10 million (six months ended 30 June 2010: $5.4 million; yearended 31 December 2010: $8.1 million) as well as amounts due from TANESCO for$14.9 million (six months ended 30 June 2010: $17.6 million; year ended 31December 2010: $15.3 million).

4Prepayment made to the villagers in respect of acquisition of the rights over the use of leasehold land.

10. Derivative financial instruments

During 2011 the Group entered into zero cost collars to manage silver pricefluctuations in the price of silver. During 2010 similar zero cost collars wereentered into to manage copper price fluctuations. The Group does not use suchderivative instruments for speculative trading purposes. These transactions areeconomic hedges, and do not qualify for hedge accounting treatment for thepositions. Changes in the fair value of these silver and copper options arerecorded as a component of other income/expense in the income statement, referto note 5. At 30 June 2011, the Group had 264 Koz of silver collar contractsoutstanding containing purchased put and call options with an average strikeprice of $28.00 per ounce and $48.32 per ounce respectively and 15,808 Klbs ofcopper collar contracts outstanding containing purchased put and call optionswith an average strike price of $3.27 per pound and $4.81 per poundrespectively. The unrealised marked-to-market gain recorded in the incomestatement for the year was $2.2 million (six months ended 30 June 2010: nil;year ended 31 December 2010:loss $3.7 million).

11. Commitments and Contingencies

The Group is subject to various laws and regulations which, if not observed,could give rise to penalties. Commitments and contingencies were disclosed inthe African Barrick Gold plc Annual Report and remain unchanged unlessdescribed below. a) Legal liabilities

At 30 June 2011, the total amounts claimed from lawsuits in which specificmonetary damages are sought amounted to $44 million. The Group's Legal Counselis defending its current position, and the outcome of the lawsuits cannotpresently be determined. However in the opinion of the Directors and Group'sLegal Counsel, no material liabilities are expected to crystallise from theselawsuits. Consequently no provision has been set aside against the claims inthe books of account.Included in the total amounts claimed of $44 million is a notice received fromthe tax investigations department informing ABG that the TRA intend to raise atax assessment of $21.3 million in respect of the acquisition of Tusker. Thecalculated tax assessment is based on the sales price of the Nyanzaga propertyof $71 million multiplied by the tax rate of 30%. Management is of the opinionthat the assessment is invalid due to the fact that the acquisition was forTusker Gold Limited, a company incorporated in Australia. The share holding ofthe Tanzanian related entities did not change and the Tusker Gold Limited groupstructure remains the same as prior to the acquisition.

b) Tax related liabilities

There is no change to be reported relating to the tax related liabilities reflected in the financial statements for the period ended 31 December 2010.

12. Related Party Balances and Transactions

The Group has related party relationships with entities owned or controlled by Barrick Gold Corporation, which is the ultimate controlling party of the Group.

The Company and its subsidiaries, in the ordinary course of business, enter into various sales, purchase and service transactions with others in the Group. These transactions are under terms that are on normal commercial terms and conditions. These transactions are not considered to be significant.

At 30 June 2011 the Group had no loans of a funding nature due to or from related parties (30 June 2010: zero; 31 December 2010: zero).

13. subsequent events

The Board of the Company has approved an interim dividend of 3.2 cents per share for this financial year to be paid on 26 September 2011 to shareholders on the register on 2 September 2011. The ex-dividend date for the interim dividend will be 31 August 2011.

The Company will declare the interim dividend in US dollars. Unless a shareholder elects to receive dividends in US dollars, they will be paid in pounds sterling with the US dollar dividend being converted into pounds sterling at exchange rates prevailing at the relevant time. The exchange rate conversion for the interim dividend will be made on or around 7 September 2011.

PINX

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